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Corporates shift to short-term bonds amid slow bank rate cuts in India

05 حزيران 2025
Indian corporates are increasingly favoring the bond market, particularly short-term bonds, due to banks' slow response to rate cuts. Liquidity infusion by the RBI has significantly lowered short-term bond yields, prompting this shift. AAA-rated companies find bond yields more attractive than bank MCLR rates, while lower-rated firms may still prefer bank credit.

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