What the flow data is telling us
FIIs net-sold ₹2,400 crore of Indian debt last week as the rupee broke below a key technical level.
Hedging costs have climbed, eating into the carry trade that had drawn flows for most of the past quarter.
What domestic investors should watch
Domestic demand is more than absorbing the supply, but a sustained reversal in flows would need either a stable rupee or a clear signal on RBI's policy path.
Until then, expect range-bound yields with episodic spikes around macro prints.