Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

India, S. Korea bonds to join FTSE Russell government indexes in 2025

Published 10/08/2024, 06:02 PM
Updated 10/08/2024, 09:35 PM
© Reuters.
MSCIEF
-
MIWO00000PUS
-

(Reuters) -Global index provider FTSE Russell said on Tuesday it would include India's sovereign bonds in its Emerging Markets Government Bond Index (EMGBI) from September 2025, after index inclusion by JP Morgan and Bloomberg Index Services, potentially drawing billions of dollars into local bonds.

The London-based index provider also added South Korean government bonds to the FTSE World Government Bond Index (WGBI) after two years on its watch list.

South Korean government bonds would represent 2.22% of the index on a market value-weighted basis and would be included in the FTSE's WGBI beginning in November 2025, FTSE said in a statement.

Indian securities will be a part of FTSE's EMGBI after being on the index provider's watch list for the last three years. It would represent 9.35% of the index on a market-value weighted basis, FTSE said.

The market value of the EMGBI is $4.7 trillion, according to the FTSE release.

"The decision is a sentiment positive and will strengthen the demand side of India bonds structurally," said Madhavi Arora, chief economist at Emkay Global Financial Services.

Indian bonds have seen foreign inflows of nearly $18.5 billion since the announcement of inclusion into JPMorgan Emerging Market index in September 2023.

In a March review, FTSE had deferred inclusion of Indian bonds in its index due to taxation, registration and settlement issues but acknowledged India's progress in the accessibility of the securities.

FTSE's announcement follows inclusion of Indian government securities in JPMorgan's Government Bond Index-Emerging Markets index starting in June 2024 and Bloomberg Index Services' Emerging Market Local Currency starting in January 2025.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.