Short selling in Indian sovereign bonds has reduced and the yield spread between local and US debt has narrowed ahead of global index providers' reviews on the inclusion of the Asian country’s debt in their widely-tracked indexes.
Outstanding short positions in India's previous benchmark 7.26% 2033 bond are now at around 90 billion rupees ($1.08 billion), down about 30% from three weeks ago, traders said, citing data from the central bank's bond trading platform.
Short positions in the 14-year bond have fallen 40% to 42 billion rupees, while those for the five-year have nearly halved to 18 billion rupees, traders said.
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