Yield on high-rated NBFC to harden further by December, tracking g-sec

The AAA-rated bond yields settled at 7.83-7.92 per cent on Monday, whereas, the yields on AA-rated bonds settled at 8.63-8.66 per cent

The yield on corporate bonds of higher-rated non-banking finance companies (NBFCs) is seen hardening further by December, tracking the rise in the yield on government securities, market participants said.

On the other hand, the yield on non-AAA-rated bonds might trade at the current levels as they are already elevated.

Market participants expect the yield on the benchmark 10-year government bond to move up by 10-15 basis points (bps) by December. The 10-year benchmark yield settled at 7.33 per cent on Tuesday.

The yield on the benchmark 10-year government bond rose by 12 bps after October 6, when the Reserve Bank of India announced