Major public sector entities HUDCO, NaBFID, and SIDBI are mobilizing a combined ₹13,500 crore from the corporate bond market. This surge in borrowing activity is a strategic response to shifting interest rate dynamics and a favorable environment for institutional debt. The Housing and Urban Development Corporation (HUDCO) is taking center stage with plans to raise up to ₹1,500 crore through perpetual bonds. This is a critical component of its significantly expanded ₹80,000 crore borrowing program for the 2025–26 fiscal year. These bonds, structured as Tier I/II capital, are expected to feature a 10-year call option. HUDCO's financial health remains robust, with a loan book reaching ₹1.34 lakh crore and a goal to hit ₹1.55 lakh crore by the end of the fiscal year. Its asset quality has seen marked improvement, with net Non-Performing Assets (NPAs) dropping below 0.1%. Market attention is also fixed on the National Bank for Financing Infrastructure and Development (NaBFID), which is proceeding with a ₹4,000 crore bond sale. This move aligns with the government's aggressive infrastructure push, underscored by a massive ₹12.2 lakh crore capital expenditure target for the upcoming fiscal cycle. The Small Industries Development Bank of India (SIDBI) continues its consistent market presence, having recently maintained outstanding bond issues with coupon rates near 7.59%. This reflects the broader pricing trend for high-grade PSU paper. The Reserve Bank of India (RBI) recently held the repo rate steady at 5.25% in its February 2026 meeting, following 125 basis points of easing throughout 2025. While wholesale bank lending rates have shown signs of easing, systemic liquidity remains tight, pushing 10-year government bond yields to approximately 6.73%. This tightening liquidity has driven many lenders toward the bond market to diversify funding. To further support this, the government has announced new financial instruments, including total return swaps and derivatives on corporate bond indices, to enhance market depth and liquidity. The corporate bond segment in India has now reached a valuation of roughly ₹53.6 lakh crore. For investors, AAA-rated PSU bonds remain a defensive "sweet spot," offering yields generally ranging between 7.5% and 9.5% as an alternative to traditional bank deposits. This video provides an expert analysis of the latest debt market trends and yield shifts following the February 2026 policy announcements. [February 2026 Debt Market Outlook](https://www.youtube.com/watch?v=z01RGOV-ZNw) http://googleusercontent.com/youtube_content/0