FPIs snap 8-day selling streak with biggest Indian bond purchase since June 15

Foreign portfolio investors made a strong return to Indian government securities on Friday, buying ₹48.88 billion through the Fully Accessible Route after eight straight sessions of selling. The buying was concentrated in the 2031 and 2032 government bonds, with foreign ownership of the 2031 paper rising sharply in a single day. The move came despite a substantial rise in US Treasury yields and a narrowing yield differential between India and the US, which has generally reduced the appeal of emerging-market debt.