More Stories

Informist, Friday, Feb. 6, 2026

 

By J. Navya Sruthi

 

MUMBAI – Yields on corporate bonds ended sharply higher, tracking government bond yields, after the Reserve Bank of India did not announce any liquidity measures in its monetary policy Friday, dealers said. Yields on government bonds also rose on lower-than-expected cut-off prices at Friday's gilt auction. 

 

"Whatever rally (fall) in yields we have seen so far this week is reversed today (Friday) as they (RBI) did not announce any liquidity measures," a dealer at a domestic brokerage firm said. "He (RBI governor) gave the same commentary in December also, which is why the market is reversing all the gains," the dealer said. 

 

"The market was expecting changes in LCR (liquidity coverage ratio) and other liquidity measures from the policy, but nothing came out," a senior dealer at a private bank said.  

 

Announcing the monetary policy, RBI Governor Sanjay Malhotra said the central bank's liquidity management would be pre-emptive with sufficient allowance for unanticipated fluctuations in government balances, changes in currency in circulation, and forex intervention. However, he did not announce any specific measures to infuse liquidity.

 

The yield on the 10-year benchmark gilt ended nine basis points higher at 6.74% Friday, the highest since Aug. 18. "Even the gilt auction result was really bad and that also weighed on prices," the dealer at the brokerage firm said. The RBI set a cut-off price of INR 92.53 for the 40-year benchmark, 6.90%, 2065 bond at auction, sharply lower than INR 92.85 expected in an Informist poll.  

 

The market now awaits details on the India-US trade deal and will closely watch rupee movements. "We can also expect FII (foreign institutional investors) flows only once we have details on the trade deal," the dealer said. "However, the large picture remains systemic liquidity. While liquidity is comfortable right now, we still have higher borrowing for next year. So, we need some positive news for things to change," the dealer added. 

 

In the secondary market, mutual funds were seen selling papers across maturities. "We saw ICICI Pru buying short-term papers (up to one year) in the first-half and selling bonds later," the dealer said. Insurance companies and banks were seen buying across maturities. Friday, volume in the secondary market on the National Stock Exchange and BSE combined was INR 83.47 billion, significantly lower than INR 117.56 billion Thursday.

 

In the secondary market, bonds issued by Andhra Pradesh State Beverages Corp., Navi Finserv, Power Finance Corp., Krazybee Services, Indiabulls Housing Finance, IIFL Samasta Finance, Keertana Finserv, UGRO Capital, REC, Capri Global Capital, Avanti Finance, Satin Finserv, Vivriti Capital, SMC Global Securities, Muthoot Microfin, Navi Finserv, The Andhra Pradesh Mineral Development Corp., Shri Ram Finance Corp., Vedika Credit Capital, and Earlysalary Services were traded the most.

 

In the primary market, there was only one bond issuance worth INR 10 billion by Knowledge Reality Trust. On Monday, Purva Oak, Keertana Finserv, Tata Capital, and Cholamandalam Investment and Finance Co. are scheduled to raise a total of INR 36.40 billion through bonds. 

 

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bond was traded Friday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

 

* INR 150 million of Uttar Pradesh's 8.71%, 2028 bond was dealt at 6.4665%

 

BENCHMARK LEVELS FOR CORPORATE BONDS

 

Tenure	Friday	Thursday
Three-year	7.10-7.15%	7.07-7.10%
Five-year	7.25-7.30%	7.18-7.24%
10-year	7.45-7.50%	7.33-7.39%

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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. 2026. All rights reserved.