Invesco ($2.45 Trillion AUM) maintains a strongly positive medium-term outlook on Indian sovereign debt, favoring longer-dated securities despite Bloomberg’s temporary deferral of India’s inclusion in its flagship index.
📌 Key Yields & Flow Data:
- $2.45 Trillion AUM: Global asset base backing Invesco’s Asia-Pacific fixed-income strategy.
- ~$7 Billion Foreign Inflows: Net foreign purchases of Indian debt since June, focused on unrestricted Fully Accessible Route (FAR) bonds.
- 7.45% – 7.55% Yield Target: Attractive yields on 30+ year bonds vs. 6.87% on 10-year benchmarks and 6.49% on 5-year paper.
💡 Investment Thesis & Market Outlook:
- Steep Yield Curve: Offers compelling carry and roll-down opportunities over short-duration assets, supported by India’s stable fiscal fundamentals.
- Durable Inflows: Foreign capital is increasingly structural, driven by market liberalization rather than purely tactical trades.
- Index Upside: Bloomberg’s delayed inclusion in the Global Aggregate Index is viewed as a temporary delay following India’s tax repeals and market reforms.