India Corporate Bonds
Yields steady on dearth of cues, need-based trade
This story was originally published at 20:42 IST on 29 July 2025
Register to read our real-time news.Informist, Tuesday, Jul. 29, 2025
By Vaishali Tyagi
MUMBAI – Corporate bond yields ended steady due to a lack of fresh market triggers, dealers said. Trading activity was mixed, driven by mutual funds rebalancing their portfolios and need-based transactions from other participants. Dealers added that selling across various tenures offset buying demand from insurance companies and pension funds, with all transactions being just requirement-based and nothing significant.
Further, dealers added that corporate bonds experienced some fluctuation, with secondary market yields rising 1-2 basis points in longer tenures earlier in the day, tracking an upward trend in government securities, dealers said. Yields on the gilts rose slightly post state bond auction showed demand was weaker than expected. Yields started rising before the results as traders who picked up state bonds at the auction sold in the secondary market. However, the yields on government bond securities ended marginally lower amid a choppy trade. The benchmark 10-year government security – 6.33%, 2035 bond -closed at 6.36% yield on Tuesday compared to 6.37% on the previous day.
"Market was flatting today (Tuesday), as some mutual funds sold papers which was offset by buying demand from insurance companies," a dealer at a brokerage firm said. "Matching demand and supply didn't lead to significant movement in yields. But, when gilt yields moved slightly higher, we saw some additional selling in corporate bonds, but ultimately yields returned to previous day's levels."
Apart from this, some mutual funds also seen selling papers due to redemption pressure in the secondary market, dealers said. Meanwhile, investors were also focused on participating in the primary market, where fresh bond issuances are tapping the market, dealers added.
Participation from all segments contributed to the higher volume. Trade volume picked up Tuesday, with deals aggregating INR 132.49 billion being recorded on the National Stock Exchange and the BSE combined, down from INR 68.96 billion on Monday. Some mutual funds and banks were active in selling papers across tenures. Insurance companies and pension funds were active on both the selling and buying sides across tenures, dealers said. Some mutual funds and a few private companies bought and sold shorter-tenure paper, a few dealers said. A handful of corporate entities were also present in the corporate debt market.
Papers issued by Rural Electrification Corp., HDFC Bank, The Andhra Pradesh Mineral Development Corp. Ltd., LIC Housing Finance, Power Finance Corp. Ltd., Telangana State Industrial Infrastructure Corp. Ltd., National Bank For Agriculture And Rural Development were traded the most on the exchanges.
On the primary market side, several companies were due to raise funds Tuesday. India Infrastructure Finance Co. Ltd. raised INR 15.60 billion at a coupon of 6.99%. On Wednesday, several non-banking financial companies are lined up to raise funds from corporate debt market through their respective bonds aggregating to over INR 49 billion. Indigrid Infrastructure Trust plans to raise INR 19 billion through bonds maturing in 22 years.
Apart from IndiGrid Infrastructure Tust, traders are eyeing some of the big-ticket issuances by Aditya Birla Capital Ltd., Equitas Small Finance Bank, Aseem Infrastructure Finance and IIFL Samasta Finance Ltd., which will tap the market through their respective bond issuances.
UDAY BONDS
In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 58.00 million were traded at a weighted average yield of 6.3142-6.9750%, according to data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System Tuesday.
* INR 53 million of Punjab's bond maturing in 2029 was dealt at a weighted average yield of 6.9750%.
* INR 5 million of Uttar Pradesh's bond maturing in 2027 was dealt at a weighted average yield of 6.3142%.
Tenure | TUESDAY | MONDAY |
Three-year | 6.70-6.73% | 6.70-6.72% |
Five-year | 6.80-6.82% | 6.80-6.82% |
10-year | 7.07-7.10% | 7.08-7.10% |
End
Edited by Deepshikha Bhardwaj
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.
To read more please subscribe
Share this Story:
