Home / Business and Economy / Nabard, REC Halt Bond Sales as Yields Spike
Nabard, REC Halt Bond Sales as Yields Spike
13 Mar
Summary
- Nabard and REC withdrew bond issuances due to high bidding rates.
- Corporate bond yields rose, mirroring government bond increases.
- Mideast conflict-driven energy shocks impacted global markets.
On Thursday, major issuers including Nabard and REC Ltd withdrew their planned bond sales. This decision was driven by bids received at rates higher than anticipated, indicating a cautious market sentiment.
The rise in corporate bond yields has mirrored increases in government bond yields. This trend is primarily attributed to global energy shocks stemming from the conflict in West Asia, which has created worldwide economic ripples.
While the Reserve Bank of India intervened by purchasing government securities to enhance liquidity, corporate bond yields saw less of a decline. This is due to selling activities from corporate treasuries and redemptions from mutual funds. The yield on Nabard's 10-year bonds, a significant benchmark in the corporate debt market, experienced a notable increase.
