Bond Market Defies RBI Rate Cut; IRFC, PFC, Sidbi Halt Fundraisings

• State-owned borrowers are pausing planned fundraisings due to a widening gap between RBI policy signals and bond market behavior.
• IRFC, PFC, and Sidbi withdrew bond issues after investors sought higher yields than the companies were willing to accept.
• Bond market yields are rising despite the RBI's recent rate cut, leading to increased corporate borrowing costs.
• Factors like rupee depreciation, global uncertainty, and heavy government borrowing are contributing to upward pressure on yields.
• The gap between the RBI's repo rate and the 10-year government bond yield has widened significantly.

Why It Matters: Bond market's high yields defy RBI policy, hindering PSU fundraising efforts.