Mumbai, April 8 -- Reserve Bank of India (RBI) has stated that corporate bond yields increased following G-sec yields as well as due to rising risk premia during H2:2025-26 The risk premia widened for higher and lower rated bonds. The average bond market risk premium (the spread of 3-year AAA corporate bond yields over 3-year G-sec yields) increased from 80 bps to 109 bps for Public Sector Units (PSUs), Financial Institutions (FIs) and banks; from 107 bps to 129 bps for NBFCs and from 105 bps to 112 bps for corporates in H2 (March 2026 over September 2025), amidst mixed corporate earnings in Q3.

Published by HT Digital Content Services with permission from Capital Market....