Bloomberg Defers Indian Bond Inclusion in Global Index, Yields Rise

Indian government bonds experienced a decline as Bloomberg Index Services deferred the inclusion of Indian debt into its Global Aggregate Index. This decision surprised many investors who had anticipated the inclusion, expecting significant foreign inflows. Bloomberg cited operational and market infrastructure considerations requiring further evaluation, with an update expected by mid-2026. While India has been included in other emerging market indices, the Global Aggregate Index represents a broader investor base. Bond yields rose following the announcement, though some support emerged from domestic investors and potential Reserve Bank of India intervention.