High yields sovereign papers may hit corporate bonds

Mumbai: India’s bond buyers seem to have cut a long story short — to the evident disadvantage of companies selling debt locally.

An unexplained skew in the yield curve has meant that lower-tenure sovereign bonds are generating nearly as much as the 10-year benchmark. In such a rate environment, project-financing corporate bonds — of longer tenures — could suffer. Unless, of course, the wrinkles are ironed out.

“This needs addressing by the