Corporate bond yields to follow gilt mart
Corporate bond yields are likely to dip by 8-12 basis points this week, in line with the trend in government papers.
However, action will continue to be in the AA, AA+ and AAA papers. The yield on a 5-year, AAA paper is expected to range between 7.65 and 7.75 per cent, while for an AA+ paper, it will be in the 7.85-7.90 per cent band.
Bond dealers said though there has been talk that action will shift towards lower rated papers, this has not happened in the past two weeks as banks, who are the main investors in corporate bonds, seem to be averse to lesser papers.
Gilts-corporate bonds
