Easing yields may trigger corporate bond mkt rebound

The wave of corporate bond sales in the first quarter ebbed in the second as borrowing costs rose, but bankers expect the lull to reverse soon as falling yields revive the bond market's lure.

- Subhana Shaikh, [e-mail]

Corporate bond sales in the September quarter plunged to ₹2 trillion from ₹3.44 trillion in the June quarter and ₹3.2 trillion a year earlier, primeda-tabase.com figures showed. The decline came alongside a rise in yield on the 10-year bonds of National Bank for Agriculture and Rural Development (Nabard), considered a benchmark in the corporate debt market. The jump in the Nabard bond yield by 18-20 basis points to 7.24% was in line with the 10-year government bond, where the yield rose 20 bps to 6.50%.