India Inc's borrowing costs rise as corporate bond yields harden

Among the key triggers for the sharp selloff in the Indian debt markets were recent rounds of unfavourable cues on interest rates, which caught market participants off-guard

A rout in domestic bond markets caused by fresh concerns of an extended monetary tightening cycle has resulted in a spike in borrowing costs for corporate entities as yields on bonds issued by private firms have shot up.

The surge in corporate bond yields has largely occurred in line with yields on government bonds, which are the benchmarks for pricing debt raised by the private sector. Bond prices and yields move inversely.

Yields on benchmark three-year corporate bonds have risen 15 basis points (bps) since the Reserve Bank of India’s (RBI’s) policy statement on February 8 till the end of