Investment by foreign portfolio investors (FPIs) in fully accessible route (FAR) bonds has crossed the $1-billion (Rs 8,740 crore) mark in just 19 days after government securities were included in the JPMorgan global bond index on June 28.

Overseas investors have poured over $1.05 billion into index-eligible bonds since June 28, according to data from the Clearing Corporation of India. With the softening bias in bond yield, experts expect inflows to increase at an accelerated pace in the coming months.

“We have seen front-loading of inflows by overseas investors. FAR bond purchases in July may be higher than $1.8-billion inflows seen in the previous month,” Dipanwita Mazumdar, an economist with Bank of Baroda, told FE. “Bond yields are likely to soften in the coming …