<div>India will sell Rs 23,661 crore worth of government debt limits to overseas investors on Monday, 22 July, amid sharp selling in bonds owing to uncertain policy environment.<br /><br />These quotas give foreign investors the right to invest in debt up to the limit bought.<br /><br />The recent sell-off in bonds come after the Reserve Bank of India raised short-term borrowing costs, restricted funds available to banks and said it would sell Rs 12,000 crore in bonds on Monday, effectively draining cash from the market, to protect a rupee that had hit a record low last week.<br /><br />Dealers say demand for the debt limits is expected to be poor as the recent measures have lifted <br />interest rates in the economy wiping out hopes the Reserve Bank of India would cut interest rates <br />in the near term.<br /><br />Foreign investors have sold $1.77 billion in debt so far this month, according to data at the market regulators website.<br /><br />India will not auction corporate bonds after doing away with auctions for this segment of debt until 90 per cent foreign ownership is reached.<br /><br />The benchmark 10-year bond yield rose more than 50 basis points after RBI measures on Monday.<br /><br />(Reuters)</div>
