InvestorQ : Why has RBI raised the yields on floating rate bonds and is that indicative of high rates to stay?
Angel dcosta made post

Why has RBI raised the yields on floating rate bonds and is that indicative of high rates to stay?

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Juvina Maggie answered.
4 weeks ago
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RBI just hiked the rates on the Float Rate Bond (FRB) maturing in 2034 by 231 bps from 5.38% to 7.69%, a clear indication that rates are headed higher. This rate is applicable for the 6-month period from 30th October 2022 to 29th April 2023. In floating rate bonds, base rate is fixed as Weighted Average Yield (WAY) of last 3 auctions of 182 Day Treasury-Bills, plus spread of 0.98%.

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