Aug 02, 2022

Costly Money: Firms may pay more as govt borrows at 6.5%

The government on Thursday paid a high 6.5299% to mop up 10-year money in a sign companies may need to fork out more for their borrowings. The rate was higher than the yield on the benchmark which closed the day’s session at 6.49%, five basis points higher than Wednesday’s close and an over two-month high. The rising risk-free rate threatens to drive up borrowing costs for companies many of whom are already finding it hard to borrow at affordable rates.

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