FIIs exhaust govt bond limit,near corp bond cap

Government bond yields have fallen over five basis points in the last one month on rate cut expectations. Of the total 10-billion limit available in the unrestricted government bond category,FIIs have invested 9.47 billion as on February 15,Sebi data show. In unrestricted corporate bond,of 20 billion limit,FIIs had bought 16 billion and have invested the entire as on February 15.

On February 20,Sebi auctioned unused limits worth around 420 million in government and 770 million in corporate bonds,which was readily lapped up by FIIs. Since the auction date till date,FIIs have invested 910 million into bonds.

Demand for debt investment limits would be strong if limits are auctioned on March 20,bankers said. Sebi auctions unused limits in bonds every month and the regulator is yet to announce the amount of freed limits it would auction in March.

FIIs have invested 1.6 billion so far in 2013 in bonds. In February,Sebi had also auctioned 5 billion worth of limits in government and corporate bond each in the long-term category. This 10 billion limit was following the hike in debt investment limit by the government in January. fe