Indian corporate bond yields inch up

Indian corporate bond yields edged higher on Friday on signs of heavy deal pipeline as the fiscal year end nears. The five-year benchmark corporate bond yield closed 1 basis points higher at 9.34 percent, and the 10-year yield also rose 1 basis point to 9.26 percent. "The issuances market is heating up," a senior dealer with a foreign bank said. "There will be a strong issuances pipeline ahead of the fiscal year end in March."
The spread between 10-year corporate bonds and government debt of the same maturity narrowed to 81.74 basis points from 83.52 on Thursday. Total volume in the corporate bond market was 45.48 billion rupees, up from Thursday's 29.60 billion rupees.