More Stories

Informist, Wednesday, Feb. 11, 2026

By Vaishali Tyagi

NEW DELHI – Yields on corporate bonds fell 3-4 basis points as mutual funds and investors aggressively bought bonds across tenures, dealers said. Buying interest from mutual funds increased due to inflows, pulling down the yields on bonds, they said. However, in initial trading hours, yields remained broadly steady as most participants were focused on primary market activity. 

"There was buying in the across tenures with concentration in 2028 and 2029 (maturity) segment by mutual funds," a fund manager at a mutual fund house said. "Redemption pressure is now over, and they (mutual funds) have received some inflows, so they are buying to deploy that cash. Five-year and 10-year bonds saw less movement compared to 2028 and 2029 tenure because there were not many trades in those segments but some quantum was big which moved the yields." 

While some market participants said most traders were largely focused on primary market activity as issuances aggregating INR 171.85 billion were scheduled Wednesday, significantly higher than Tuesday's INR 6.50 billion. Wednesday's issuances included some key issuances from state-owned entities. Small Industries Development Bank of India raised INR 78.66 billion at a coupon of 7.22% through bonds maturing Apr. 9, 2029.

Another, state-owned entity, National Bank for Financing Infrastructure and Development Wednesday borrowed INR 25.535 billion at a coupon of 7.45% through 10-year bonds maturing on Feb. 12, 2036. One more key issuer was Housing and Urban Development Corp. which tapped the market to raise INR 14.42 billion through perpetual bonds at a coupon of 7.87%. Other non-bank financial companies also tapped the market to raise funds from debt market. Merchant bankers believe activity in the primary market will continue to rise, driven by a slight fall in yields and increased investor appetite amid good liquidity in the banking system. "Like...I said earlier also, more issuers are expected to announce their plans as yields have fallen a bit and they are seeing investors appetite has also risen due to liquidity in the system," the dealer quoted above said. According to the latest data, the net liquidity absorbed from the banking system by the RBI – a proxy for the liquidity surplus – rose to INR 3.37 trillion Tuesday from INR 3.11 trillion Monday.

While some market participants said banks were largely on the sidelines in the secondary market, however, mutual funds were seen buying bonds aggressively, dealers said. "They (mutual funds) are buying the shorter-tenure bonds as these are more active segments," a dealer at another brokerage firm said. Insurance companies and pension funds were largely absent from secondary as they were seen more active in primary market, dealers said.

Overall volume in the secondary market was broadly unchanged, with deals aggregating to INR 90.96 billion recorded on the National Stock Exchange and BSE combined, compared with INR 90.34 billion Tuesday. Bonds issued by Aditya Birla Finance, Indian Renewable Energy Development Agency, State Bank of India, Receivable Securitisation Trust, GMR Goa International Airport, India Infrastructure Finance, NABARD, National Highways Authority of India, and Kerala Infrastructure Investment Fund Board were traded the most.

UDAY BONDS

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

* INR 12.0 million of Andhra Pradesh's 7.35%, 2030 bond was dealt at 7.0802%

* INR 7.00 million of Rajasthan's 8.21%, 2026 bond was dealt at 5.9736%

* INR 6.50 million of Rajasthan's 8.19%, 2026 bond was dealt at 5.9606%

* INR 2.50 million of Telangana's 7.81%, 2027 bond was dealt at 6.3884%

* INR 2.00 million of Tamil Nadu's 8.04%, 2029 bond was dealt at 6.6457%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

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

With inputs by Pratiksha

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. 2026. All rights reserved.