15/5/2025, 9:53:02 pm

Narrow India, US bond yield spread may cap FPI investment in Indian bonds

SEBI proposed easing regulatory norms for foreign portfolio investors (FPIs) on May 14, but narrowing bond yield spreads between India and the US may limit short-term investment. The spread dropped to 177 bps on May 15 from 221 bps in February, post-RBI rate cuts. FPI investments in government securities remained steady at Rs 2.74-2.95 lakh crore. Geopolitical tensions also impacted FPI activity.