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 maximum weight India will receive in the JP Morgan emerging market indices?

• 5%

• 10%

• 15%

• 20%

How much passive inflow is expected into the Indian bond market due to the JP Morgan inclusion?

• $15 to $20 billion

• $25 to $30 billion

• $10 to $15 billion

• $35 to $40 billion

Which other global index provider is mentioned as considering the inclusion of Indian bonds?

• S&P Global

• MSCI

• FTSE Russell

• Dow Jones

What is the expected change in the 10-year yield according to Citibank?

• A rise to 6.50%

• A drop to 6.00%

• A drop to 6.80%

• A rise to 7.00%

What economic factor is mentioned as having a significant impact on Indian debt?

• Crude oil prices

• Stock market fluctuations

• Gold prices

• Real estate trends