Low Premiums On Parts Of Indian Credit Prompt Calls For RBI Help

Tightening premiums are often a sign of a strong credit market, but in India, recently, it’s more about dislocations in the yield curve due to central bank interventions. As the Reserve Bank of India tries to tame borrowing costs amid the pandemic, spreads on five and 10-year rupee corporate bonds that usually move in lockstep have diverged, with premiums on the shorter notes falling.

Source- Bloomberg

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