India Corporate Bonds
Need-based trading keeps yld in narrow band; volume dn
This story was originally published at 20:35 IST on 4 July 2025
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MUMBAI – Yields on corporate bonds in the secondary market moved in a narrow range Friday as traders restricted themselves to need-based trading due to no significant cues in the near term, dealers said. Low interest from traders also resulted in subdued trading volume in the secondary market, they added.
"Today (Friday) was a muted day with very light trading in the secondary market," a dealer at a mid-sized brokerage firm said. "Traders are primarily engaging in need-based trading as there are no events near by to take cues and place bets."
Amid thin trade, mutual funds were seen buying and selling bonds as per their portfolio requirements, dealers said. They were seen deploying funds in the secondary market as they have abundant funds with them because of a fall in primary market issuances, dealers said.
Trade volume in the secondary market was sharply lower, with deals aggregating to INR 91.92 billion recorded on the National Stock Exchange and BSE combined at 1800 IST, compared with INR 169.91 billion Thursday.
Papers issued by REC, HDFC Bank, State Bank of India, Power Finance Corp, Bajaj Housing Finance, HDB Financial Services, and Tata Capital were traded the most on bourses.
In the primary market, activity remained subdued. Market participants expect issuances to rise gradually with banks dominating the primary market, dealers said. Non-banking financial companies may be seen again with bumper issuances with large funds, dealers said. On Monday, Wrss Xxi Transco Ltd. will tap the corporate bond market to raise upto INR 6.32 billion through two bonds.
UDAY BONDS
In the secondary market, Haryana's 8.21%, 2026 Ujwal DISCOM Assurance Yojana bond aggregating INR 47.30 million was traded at a weighted average yield of 6.3383%, data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System showed Friday.
ENCHMARK LEVELS FOR CORPORATE BONDS:
Tenure | FRIDAY | THURSDAY |
Three-year | 6.64-6.67% | 6.68-6.70% |
Five-year | 6.78-6.82% | 6.78-6.80% |
10-year | 7.04-7.08% | 7.03-7.06% |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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