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Informist, Wednesday, Dec. 3, 2025

By J. Navya Sruthi

MUMBAI – Yields on corporate bonds in the secondary market were largely steady across tenors Wednesday due to caution ahead of the Reserve Bank of India's Monetary Policy Committee meeting decision Friday, dealers said. Yields are likely to remain steady till the monetary policy decision, they said. 

Most issuers were reluctant to tap the market before the outcome of the meeting and market participants are awaiting for cues from policy meeting to guide the market, dealers said. "Traders were quiet (Wednesday)," a dealer at a brokerage firm said. Market participants expect yields to fall by two to three basis points if the central bank cuts key interest rates. "If there is no rate cut then it (yields) will go up (by) 2-3 bps," a dealer at a mutual fund house said. 

Dealers said that the market is divided on a rate cut in the upcoming meeting. While a few market participants and experts expect a rate cut as they see the December meeting as the final chance to cut interest rates, others do not see one, on the back of firm GDP data for the September quarter. The section of the market that does not see a cut on Friday expects dovish comments and a change in stance from neutral to accommodative. 

In the secondary market, mutual funds were selling, while banks and corporates were on the buying side. Overall, deals aggregating to INR 131.46 billion were recorded Wednesday on the NSE and BSE combined, up from INR 112.34 billion Tuesday. Papers issued by Vivriti Capital, Earlysalary Services Pvt. Ltd., REC Ltd., Krazybee Services, Akara Capital Advisors, Keertana Finserv, The Andhra Pradesh Mineral Development Corp. Ltd., NABARD, Muthoot Capital Services, Muthoot FinCorp., and UGRO Capital were traded the most on the exchanges Wednesday.

Meanwhile, in the primary market, issuances aggregating to INR 12.0 billion were scheduled for Wednesday, almost double the issuances seen Tuesday, which were at INR 6.25 billion. Thursday, PNB Housing Finance, Mindspace Business Parks Reit, and 360 ONE Alternates Asset Management have invited bids to raise funds. Issuances aggregating to INR 19.1 billion are scheduled for Thursday.

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds aggregating to INR 5.80 million were traded, according to data on the RBI's Negotiated Dealing System-Order Matching system Wednesday.

* INR 3.00 million of Uttar Pradesh's 8.35%, 2029 bond was dealt at a weighted average yield of 6.6511%

* INR 2.80 million of Tamil Nadu's 7.75%, 2029 bond was dealt at a weighted average yield of 7.1599%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

With inputs from Vaishali Tyagi

Edited by Akul Nishant Akhoury

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