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Informist, Monday, Jul. 27, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds ended lower Monday, tracking the fall in the yields on Indian government bonds and the decline in crude oil prices, dealers said. Bonds maturing up to five years were actively traded, with mutual funds and pension funds seen actively participating in the secondary market. 

 

Corporate bond yields fell more than five basis points in the morning session amid market speculation that the Reserve Bank of India had sold dollars for forward delivery, a dealer at a brokerage firm said. However, the decline was capped as some mutual funds sold bonds towards the end of trading hours. A few dealers remained speculative and said the impact was limited due to the absence of large-scale selling.

 

The yield on the 10-year benchmark 6.94%, 2036, Indian government bond settled at 6.7739%, down from 6.8253% Friday. At 1727 IST, Brent crude oil futures for September delivery traded at $89.25 per barrel, sharply down from the previous close of $96.78 per barrel. 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.35–7.37%, down from 7.44% Friday. The indicative yield on NABARD's five-year bond was 7.33–7.35% from 7.42–7.43% Friday. The indicative yield on NABARD's 10-year bonds was 7.40–7.50% against 7.50-7.55% Friday.

 

"Yields eased as market sentiment improved," a dealer at a state-owned bank said, referring to the fall in the yields on Indian government bonds and the fall in crude oil prices.

 

In the secondary market, overall deals worth INR 98.40 billion were recorded on the National Stock Exchange and BSE combined, similar to INR 98.61 billion at the same time Friday. Papers issued by Housing and Urban Development Corp., Power Finance Corp., Aditya Birla Housing Finance, IIFL Finance, and Tata Power Renewable Energy were traded actively.

 

The primary market saw bond issuances worth INR 31.50 billion Monday. Summit Digitel Infrastructure's INR-12-billion June 2031 bonds were fully subscribed at a coupon of 7.51%, dealers said. Tata Capital Housing Finance raised INR 5.25 billion through the reissue of the 7.17%, May 2030 bonds. Avanse Financial raised INR 5 billion through October 2027 bonds at a coupon of 8.80%. 

 

Activity in primary market is seen falling with fewer bond issuances slated for Tuesday. Aye Finance plans to raise up to INR 2.20 billion through the issuance of two-year bonds, dealers said. Satin Finserv will seek bids for up to INR 850 million through the issuance of bonds maturing in July 2028, while Finkurve Financial Services eyes INR 260 million through the reissue of the 11.55%, April 2029 bonds.

 

Public sector banks are largely seen absent from upcoming bond issuances as they are exploring raising funds through external borrowings, the dealer at the public sector bank said. "It is mostly NBFCs (non-banking financial companies) that are coming (in the primary market). They don't have ECB (external commercial borrowing) benefit."

 

On Jun. 8, the Reserve Bank of India unveiled a swap facility for external commercial borrowings and overseas foreign currency borrowing will remain open up to Jan. 15, 2027, for eligible external commercial borrowings drawdowns made and overseas foreign currency borrowing flows received up to Dec. 31.  

 

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 3.00 million was traded Monday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 3.00 million of Tamil Nadu's 8.04%, 2029 bond was dealt at 6.7906%.

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Friday	Friday
Three-year	7.35–7.37%	7.44%
Five-year	7.33–7.35%	7.42-7.43%
10-year	7.40–7.50%	7.50-7.55%

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

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