Foreign investments in government bonds top expectations, promise a lot more

The current numbers translate into a monthly flow of around $2.5 billion, which is on the upper end of broad market expectations of a monthly flow of $2-2.5 billion hitting the market due to index inclusion. Given the recent commencement of a US monetary easing cycle - which increases the appeal of emerging market assets for global investors - that flow is expected to rise in the next three months.