Borrowing costs in bond market may rise as upside risks to India's 10-year bond yield persist: BoB Report

Expect an uptick in borrowing costs within India's bond market as uncertainties loom large. The 10-year government bond yield remains under pressure from upside risks. Non-Banking Financial Companies are facing steepest borrowing premiums, outpacing corporate borrowers, who are themselves grappling with increased spreads over public sector counterparts. This environment of macroeconomic unpredictability, along with higher bond yields, could lead to even steeper borrowing rates.