Asian bonds attracted their largest monthly inflow in three months in February, helped by expectations that the U.S. Federal Reserve would cut rates later this year, and also boosted by the region’s strong exports.
Foreign investors accumulated a net $4.41 billion of bonds in India, South Korea, Malaysia, Indonesia and Thailand last month, marking their fourth successive month of net buying, data from regulatory authorities and bond market associations showed.
Demand for Indian bonds soared with a net investment of $2.7 billion, the highest monthly figure since July 2017, buoyed by their impending inclusion in JP Morgan’s emerging market debt index.
“Rupee sovereign bonds are poised for further gains on strong foreign inflows, largely frontrunning the upcoming bond index inclusion,” Radhika Rao, a senior economist at DBS Bank…
