The State Bank of India (SBI) predicts that yields on Indian Government Bonds (IGBs) could reach 7% before the end of the current fiscal year and are likely to exceed 7% in FY25 following their inclusion in JP Morgan’s Emerging-market Index. JP Morgan’s announcement to include IGBs in its benchmark index starting from June 2024 with a maximum weight of 10% could result in passive flows of around $24 billion. FTSE Russell is also considering including Indian bonds in its emerging market gauge. SBI believes this strategic move by the Government of India and the Reserve Bank of India aims to ensure the organic evolution and maturity of the IGB market.
Indian G-Sec Bonds in JP Morgan: SBI Predicts Yields May Reach 7% in FY 24
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