Interest Rate: JP Morgan to add India G-Secs to its emerging market bond index
MUMBAI: Global financial services major JP Morgan has decided to include Indian government securities (G-Secs) in its emerging market bond index, a move seen to boost dollar inflows into the country and bring down the rate of interest.This is the first time Indian G-Secs have been added to a major global bond index.JP Morgan on Friday said India's G-Secs will be incorporated in three of its bond indices consisting of similar instruments issued by the governments of emerging markets like China and Indonesia from June 28, 2024. Beginning with 1%, the weightage of Indian G-Secs would rise to a maximum of 10% over the 10 months until March 2025.Since the index is widely followed by global bond fund managers, estimates say $40-45 billion funds could flow into India between June 2024 and March ...