Bond issuers move early as rate-cut doubts hit markets

Bond issuers have flooded the market with long-term paper ahead of the 5 December MPC meeting

- Anshika Kayastha

Steep curve means rate action may lift short-end yields.

Bond issuers have flooded the market with long-termpaper ahead of the 5 December Monetary Policy Committee (MPC) meeting, breaking from the past trends amid uncertainty about a rate cut, a weakening rupee, and a high supply of central and state government debt.

In the past two weeks, financial institutions like Axis Bank, Power Finance Corp., Canara Bank, ICICI Bank, Indian Railway Finance Corp., and ICICI Prudential Life Insurance Co. have issued bonds with a tenure of 10-15 years, collectively raising around ₹19,600 crore.