-- Altifi, a SEBI-registered online bond investment platform backed by Northern Arc Capital, one of India's leading diversified non-banking financial companies, has released a market study examining publicly available data and analyst commentary on the yield premium observed in Indian corporate bonds relative to government securities (G-Secs) as the market approaches 2026.
The study reviews historical yield trends, regulatory disclosures, and market research to analyze how monetary policy conditions, issuance patterns, liquidity developments, and market structure have influenced spread movements between AAA-rated corporate bonds and sovereign benchmarks.
Review of Historical Yield Trends
Based on publicly reported yield data referenced in financial media, spreads between AAA-rated corporate bonds and comparable G-Secs widened during select periods in 2025. Market commentary cited benchmark 10-year G-Sec yields around 6.54% in November 2025, while yields on similarly rated corporate bonds of comparable maturity were reported at higher levels during the same period.
Analysts cited in public sources described these differentials as a notable historical development within India’s fixed-income market, reflecting observed pricing dynamics rather than future expectations.
Market Expansion and Issuance Activity
The study places these yield movements within the broader context of India’s bond-market growth. Public reports estimate total outstanding bonds at approximately $2.78 trillion as of March 2025, with corporate bonds accounting for more than one-fifth of the market.
Financial media also reported record corporate bond issuance during FY25, supported by liquidity conditions and evolving regulatory frameworks. These developments have been discussed by analysts as part of a broader shift toward market-based corporate financing.
Monetary Policy and Spread Behavior
Altifi review references public disclosures showing that the Reserve Bank of India reduced the repo rate by 100 basis points during 2025. Analysts cited in financial publications observed that government bond yields adjusted more rapidly during this period, while corporate bond yields showed comparatively slower movement, contributing to wider observed spreads across certain maturities.
The study notes that these observations are based on historical data and publicly available analysis.
Maturity-Wise Spread Observations
Public yield data referenced in the study indicated variation in spread behavior across tenors. Market commentary cited wider historical differentials in short- to medium-term maturities compared with longer-dated bonds during certain periods.
Analysts discussing these trends attributed the differences to factors such as duration sensitivity, liquidity characteristics, and investor demand across maturity segments, based on historical market behavior.
Issuer Quality and Market Liquidity
The study also reviews public disclosures from rating agencies and financial publications on AAA-rated issuers, including both public-sector and private-sector entities. Analysts cited yield differences between these segments in historical data, referencing factors such as ownership structure, credit perception, and trading liquidity.
Liquidity conditions in the secondary market were also examined. Exchange data cited in financial reporting indicated increased trading volumes and greater electronic participation following regulatory initiatives aimed at improving transparency and price discovery.
Global Market Context
Altifi’s study references publicly reported foreign investment flows following India’s inclusion in global bond indices. Market commentary cited potential effects on liquidity and participation, based on observed historical developments and publicly available research.
Purpose of the Study
Altifi stated that the study is intended to provide a descriptive review of publicly available market information and analyst commentary. It does not include forecasts, recommendations, or investment advice.
About Altifi
Altifi is a fixed-income analytics and intelligence platform focused on analyzing publicly available bond-market data. The platform supports research on market structure, yield behavior, and transparency across fixed-income markets.
Contact Info:
Name: Andrew Jackson
Email: Send Email
Organization: Altifi
Website: https://Altifi.ai
Release ID: 89178493
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