Unprecedented liquidity may have led to a rally in equities, but that's not trickling down to loans and bonds market with the spread between the benchmark government bond yields and a triple AAA firm's loan rates remaining higher than what it was before Covid 19 breakout, says a report by State Bank of India economist. SBI's analysis shows that the spread between benchmark government bond yield and a triple AAA firm's loan rate in May was over 100 basis points (one bps in 0.01 per cent) compared to 90-100 bps before COVID-19.
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