Corporate Bonds

Riding on short conflict hopes

Trading sentiment in the non-statutory liquidity ratio (non-SLR) market is expected to be good this week as the Gulf War is expected to be short-lived. Corporate bond market players will take a cue from the government securities market before building limited positions.

The difference in yields (spreads) between the best-rated five-year corporate bond and corresponding maturity gilt is expected to come down a tad to around 50 basis points as against previous week