💨 Abstract

Indian mutual funds have increased investments in state and corporate bonds, selling federal government debt to capitalize on the rising yield differential. This shift is due to increased supply and widened spreads in state and corporate bonds, with the gap between state and federal government bond yields reaching over 50 basis points, and that between corporate debt and federal debt at 90 basis points. The rush in corporate bond supply and lack of activity in government bonds during Q1 contributed to this shift.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖