REUTERS/Thomas White/Illustration Acquire Licensing RightsMUMBAI, Sept 22 (Reuters) - Indian bond markets won't see a jump in volatility in the near-term after JPMorgan (JPM.N) announced India's inclusion in its widely tracked emerging market debt index, BlackRock's head of Asia Pacific fixed income said on Friday.
JPMorgan said 23 Indian Government Bonds (IGBs) with a combined notional value of $330 billion were eligible for inclusion in its Government Bond Index-Emerging Markets (GBI-EM) index and index suite, benchmarked by about $236 billion in global funds.
Given the size of the $2 trillion global government bond market, it may add only a little bit to the volatility in Indian bond markets, Seth told the Reuters Global Markets Forum.
Foreign investor buying in Indian bonds has remained tepid with net purchases of $3.4 billion so far in 2023.
He also pointed to investment-grade credit in Asia and higher quality emerging market bonds, in a "tilt towards quality" as macro uncertainties persist.
Persons:
Thomas White, Neeraj Seth, Seth, Divya Chowdhury, Savio Shetty, Alex Richardson
Organizations:
REUTERS, Rights, JPMorgan, Asia Pacific, Government, BlackRock, Reuters Global Markets, Thomson
Locations:
India, Rights MUMBAI, Asia, Mumbai