People familiar said HSBC Holdings has bought at least $3 billion of Indian government bonds since July, funding the purchases with large inflows raised under the Reserve Bank of India’s non-resident foreign currency deposit scheme (FCNR(B)). The bank has concentrated purchases in five-year paper and has attracted over $10 billion under the scheme, the largest intake among global peers. The RBI’s overseas dollar window, opened on June 5 to draw foreign currency and support the rupee, has helped

People familiar said HSBC Holdings has bought at least $3 billion of Indian government bonds since July, funding the purchases with large inflows raised under the Reserve Bank of India’s non-resident foreign currency deposit scheme (FCNR(B)). The bank has concentrated purchases in five-year paper and has attracted over $10 billion under the scheme, the largest intake among global peers. The RBI’s overseas dollar window, opened on June 5 to draw foreign currency and support the rupee, has helped compress domestic funding costs: since June 5 five-year government yields have fallen about 31bp versus roughly a 12bp decline in the 10-year.