After record foreign portfolio investor (FPI) inflows into Indian government bonds in June, purchases via the fully accessible route (FAR) have slowed down in July. Market participants cited renewed geopolitical tensions in West Asia, which have pushed up crude oil prices as a key factor dampening overseas buying sentiment and narrowing interest rate differential between US and India. FPI inflows into government securities under FAR fell sharply to Rs 7,602 crore in July from record inflows of Rs 41,773 crore in June, according to data from the Clearing Corporation of India. Inflows in June were driven by a combination of Reserve Bank of India (RBI) measures and heightened expectations that India would soon be included in the Bloomberg Global Aggregate Index after the government scrapped capital gains tax on foreign holdings of sovereign debt.