Foreign investors reduce expectations for a further rate hike in India while trading activity in five-year interest-rate swaps climbs to a record level, according to market coverage from multiple outlets. One report says turnover in the five-year swap—used as a key gauge of policy rate expectations—rises to a record ₹25,300 crore (about $2.65 billion) on Wednesday. This follows a prior high of about ₹23,600 crore in notional contracts recorded on Tuesday, which the same reporting notes was surpassed during the latest session. Together, the articles indicate a shift in how investors position for India’s policy path: while swap turnover accelerates and reaches its highest level in the period cited, foreign participation is described as paring back bets on additional rate hikes. The combined coverage points to heightened activity and potential portfolio rebalancing in the derivatives market, reflecting updated expectations for future interest rates.
Foreign investors cut India rate-hike bets as five-year swaps hit record trading
Foreign investors reduce expectations for a further rate hike in India while trading activity in five-year interest-rate swaps climbs to a record level, according to market coverage from multiple outl...
- Turnover in India’s five-year interest-rate swaps rises to a record ₹25,300 crore on Wednesday.
- The previous day’s five-year swap notional turnover was about ₹23,600 crore.
- Five-year swaps are described as a key gauge of policy rate expectations.
- Foreign investors are reported to pare back bets on further rate hikes.
- Derivatives trading activity increases alongside the shift in rate expectations.
Turnover in the five-year swap, a key gauge of policy rate expectations, jumped to a record ₹25300 crore ($2.65 billion) on Wednesday, breaking past ₹23,600 crore notional contracts clocked on Tuesday
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