India Corporate Bonds
Yields steady on dearth of cues; PFC bond issue eyed
This story was originally published at 20:55 IST on 16 July 2025
Register to read our real-time news.Informist, Wednesday, Jul. 16, 2025
By Vidhushi RajPurohit
MUMBAI – Yields remained broadly steady Wednesday as market participants lacked strong fresh cues to place aggressive bids, dealers said. Traders were more active in the short-tenure segment of the market, they said, while longer-tenure papers received tepid trading interest.
Mutual funds were selling bonds maturing in five years, while some banks were on the buying side, dealers said. Traders were mostly involved in requirement-based trade, which kept the market volume low.
"Mutual funds were seen selling papers today (Wednesday), as there was some redemption pressure," a dealer at a brokerage firm said. "It was mostly staggered, and it's hard to pinpoint any reason for activity when the traded amount is low."
Deals aggregating to INR 108.78 billion were recorded on the National Stock Exchange and BSE combined Wednesday, as against INR 91.15 billion registered on Tuesday. Papers issued by REC Ltd., HDFC Bank Ltd., Embassy Office Parks Reit, Indian Railway Finance Corp. Ltd., Apex Homes Private Ltd., The Andhra Pradesh Mineral Development Corp. Ltd., Cholamandalam Investment And Finance Co. Ltd., Power Finance Corp. Ltd., National Bank For Agriculture And Rural Development, and HDB Financial Services Ltd. were traded the most on the bourses.
Traders were seen buying bonds of Embassy Office Parks Reit on Wednesday, with trade volumes aggregating to INR 5.15 billion, ahead of its likely bond issuance next week. The company is likely planning to tap the primary market next week to raise around INR 10 billion via bond issue, sources told Informist.
In the primary market, Bajaj Housing Finance set a coupon of 6.97% on its three-year bond and accepted bids aggregating to INR 10.00 billion. Traders await Thursday's perpetual bond issuance by Power Finance Corp. Ltd. and it plans to raise up to INR 5 billion. Dealers expect Power Finance Corp. bond to raise funds in the coupon range of 7.40%-7.45%.
UDAY BONDS
In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 33.30 million were traded at a weighted average yield of 6.1402-7.0920%, data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System showed.
* INR 27.00 million of Telangana's Mar. 7, 2032, and Mar. 7, 2031, bonds were dealt at weighted average yields of 6.9562-7.0920%
* INR 2.80 million of Tamil Nadu's Feb. 22, 2031, bond was dealt at a weighted average yield of 6.6978%
* INR 2.00 million of Jharkhand's Mar. 30, 2031, bond was dealt at a weighted average yield of 6.6809%
* INR 1.50 million of Rajasthan's Jun. 23, 2026, bond was dealt at a weighted average yield of 6.1402%
BENCHMARK LEVELS FOR CORPORATE BONDS:
Tenure | WEDNESDAY | TUESDAY |
Three-year | 6.69-6.72% | 6.68-6.71% |
| Five-year | 6.81-6.84% | 6.82-6.85% |
10-year | 7.05-7.10% | 7.06-7.10% |
End
Edited by Deepshikha Bhardwaj
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