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PSU bond issues hit pause as yields rise despite RBI rate cut

Mint Chennai

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December 16, 2025

A growing disconnect between monetary policy signals and bond market pricing is forcing state-owned borrowers to step back from planned fundraisings.

- Subhana Shaikh

PSU bond issues hit pause as yields rise despite RBI rate cut

On Monday, Indian Railway Finance Corp Ltd (IRFC) became the third public sector issuer—after Power Finance Corp (PFC) and Small Industries Development Bank of India (Sidbi)—to withdraw a bond issue within a week.

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