New Delhi: Foreign investors increased their exposure to Indian government bonds in October by the most of any month so far this financial year, the latest data showed on Monday.

Investors net purchased Indian government bonds under the Fully Accessible Route category worth 134 billion rupees ($1.5 billion) last month, the highest monthly inflow since March, according to Clearing Corp data.

“There are chances of a rate cut in December, plus the possibility that the central bank will start conducting open market bond purchases starting December or January to infuse liquidity in the system to also facilitate effective transmission of rate cuts,” said Alok Sharma, head of treasury at ICBC.

Most bonds in the FAR category are part of three global bond indexes — JPMorgan, Bloomberg and FT

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