More Stories

Informist, Monday, May. 5, 2025

By Ashna Mariam George 

MUMBAI – Yields on corporate bonds were little changed in the secondary market on Monday due to limited trading amid low volumes, dealers said. "There was some activity, but it was just requirement-based," a dealer at a mid-sized brokerage firm said. "Mutual funds wanted to buy and sell some particular papers (based on requirement), so they got that today (Monday)."

Yields on corporate bonds fell only 1-2 basis points, though the movement in government securities was sharper, dealers said. "It was only 1 or 2 bps down because G-secs (government securities) rallied (prices went up), and there was some buying," a dealer at another mid-sized brokerage firm said. The yield on the benchmark 10-year 6.79%, 2034 government bond ended at 6.32%, lower than 6.35% on Friday, due to a fall in crude oil prices and no escalation in tensions between India and Pakistan.

Market participants also took note of a correction in the yield curve, as yields on longer tenure papers are now higher than that on shorter tenure ones. "The curve is now much flat, earlier it was inverted," said the first dealer quoted earlier. Yields on shorter tenure papers fell more than those on longer tenure papers in April, after the Reserve Bank of India reduced the repo rate by 25 bps to 6.00% and changed its stance to 'accommodative' from 'neutral'. In a rate cut cycle, shorter tenure papers are more attractive compared to longer tenure papers as these price in the anticipated rate cuts more than the longer-dated papers.

In the secondary market, deals aggregating INR 121.18 billion were recorded on the National Stock Exchange and the BSE combined, higher than INR 98.41 billion reported on Friday. While mutual funds were active on both buying and selling sides, banks, pension funds, and insurance companies kept to the sidelines, dealers said.

The papers traded most on Monday were those issued by the Telangana State Industrial Infrastructure Corp., the National Bank For Agriculture And Rural Development, the Small Industries Development Bank of India, Bajaj Finance, and Jamnagar Utilities and Power Pvt. Ltd. 

The primary market did not see any major issuances on Monday. Bajaj Finance has invited bids on Tuesday to raise up to INR 42 billion through the reissuance of two bonds of varying maturities. The company plans to raise up to INR 12 billion through the reissuance of near-six-year bonds maturing on Apr. 18, 2031 and up to INR 30 billion through reissuance of over-five-year bonds maturing on Jun. 28, 2030.

UDAY BONDS

In the secondary market, Rajasthan's Mar. 16, 2026, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 36 million were traded at a weighted average yield of 6.4878%, data from the RBI's Negotiated Dealing System–Order Matching System showed Monday.

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.