Foreign Portfolio Investors (FPIs) have been selling off their investments in the debt market as the “Trump trade” has started to disrupt their strategies. The uncertainty surrounding the policies and decisions of the Trump administration has caused a ripple effect in the global markets, leading FPIs to reallocate their investments.
The debt market, which was once considered a safe haven for investors, has now become a battleground as FPIs scramble to adjust their portfolios in response to the changing dynamics of the global economy. The Trump administration’s protectionist policies and trade wars have created a sense of unease among investors, prompting them to reassess their risk exposure.
As a result, FPIs are shifting their focus towards other asset classes that are perceived to be less volatile in the current environment. This has led to a significant sell-off in the debt market, with FPIs looking to hedge their positions and protect their investments from potential losses.
The sell-off in the debt market is a clear indication of how geopolitical events and policy changes can impact investor sentiment and drive market movements. While FPIs continue to monitor the developments in the global economy, it remains to be seen how long the “Trump trade” will continue to play spoilsport in the debt market.