PSUs to Issue Bonds to Meet Quarter-End Needs

PSUs, like government-owned companies, are selling bonds to raise money.

They're doing this now because they need money for their operations, and because interest rates (yields) have become slightly more favorable.

For example, Numaligarh Refineries plans to raise a large sum.

Experts say this rush is due to the end of the financial quarter and anticipation of potential changes in interest rates.

Demand for these bonds is strong from banks and pension funds, but may be weak from mutual funds.

Issuers want to lock in demand before any changes in the monetary policy.