JPMorgan Says India to Be Added to Emerging-Market Bond Index

The transcript discusses the inclusion of Indian sovereign bonds in JP Morgan's emerging market indices, marking a significant milestone for the Indian bond market. This inclusion, starting in June 2024, is expected to bring $25 to $30 billion in passive inflows, potentially reaching $40 to $50 billion with other index inclusions. The move is anticipated to alter market dynamics, reduce oversupply, and increase foreign participation. Citibank predicts a drop in the 10-year yield by 30 basis points. Despite current market headwinds like rising US yields and crude oil prices, the inclusion is seen as a stabilizing factor for the Indian bond market.

What is the significance of JP Morgan adding Indian sovereign bonds to its emerging market indices?

How much weight will India have on the JP Morgan index upon inclusion?

What are the expected passive inflows into the Indian bond market due to this inclusion?

What impact is the inclusion expected to have on the demand-supply dynamics of the Indian bond market?

How might the inclusion of Indian bonds affect the yields in the coming months?