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Informist, Thursday, Mar. 12, 2026

By Vaishali Tyagi

NEW DELHI – Yields on corporate bonds rose in the secondary market Thursday, tracking the rise in government bonds yield, dealers said. Mutual funds facing redemption pressure sold bonds, which led to even more selling, pushing yields further higher, they said. Mutual funds sold bonds across tenures, they said. 

Indicative yields on three-year bonds of National Bank for Agriculture and Rural Development rose to 7.24-7.28% Thursday from 7.21-7.23% Wednesday, while those on five-year NABARD bonds were up at 7.29-7.34% from 7.27-7.31%. The yields on 10-year bonds rose to 7.43-7.45% from 7.40-7.42%.

Government bond yields ended sharply higher due to a significant rise in crude oil prices and the benchmark 10-year US Treasury yield. The 10-year benchmark 6.48%, 2035 gilt closed at a yield of 6.6666%, up from 6.6366% Wednesday. 

"Corporate bond yields rose in line with government securities, with the market sentiment turning bearish and there was good amount of selling since morning," a dealer at a private sector bank said. "Market was bad today (Thursday)." Bond yields have risen across markets, marking a continued trend for several days as the market is highly volatile due to the West Asia conflict.

Brent crude for May delivery was slightly over $97 a barrel at 1700 IST, up from $91.98 a barrel at the same time Wednesday. The contract had touched a high of $101.59 during Indian market hours. At 1700 IST, the yield on the benchmark 10-year US Treasury was 4.24%, up from 4.16% at the same time Wednesday. 

In the secondary market, deals aggregating to INR 167.73  billion were recorded on the National Stock Exchange and BSE combined Thursday, significantly higher than INR 113.37 billion Wednesday. Mostly, the selling pressure was led by mutual funds, while insurance companies and banks were on the buying side, in selective segments. 

Papers issued by Navi Finserv, Dishman Carbogen Amcis, National Housing Bank, Small Industries Development Bank of India, UGRO Capital, Vivriti Capital, Mahindra & Mahindra Financial Services, Branch International Financial Services, National Bank for Agriculture And Rural Development, The Andhra Pradesh Mineral Development Corp, and Unifinz Capital India were traded the most.

In the primary market, bond issuances surged to INR 153 billion Thursday from INR 77.20 billion Wednesday. NABARD scrapped its issue of bonds maturing on Jun. 22, 2033 due to higher coupon rate. The company planned to raise up to INR 80 billion through the issue. The company's officials had anticipated a coupon rate of around 7.10-7.15% for the issuance. NABARD initially planned to tap the market when Bank of Baroda issued bonds last week. However, the process got delayed, the official said.

Power sector lender REC, another state-owned entitiy, also planned to raise INR 60 bln through two bonds, out of which the company raised INR 30 billion through five-year bonds at 7.19%. The company scrapped the INR 30 billion two-year bond issuance as the coupon rate was high. 

On Friday, over INR 40 billion worth of bonds will hit the market. Vedanta plans to raise up to INR 30 billion through the issuance of three-year bonds. Sundaram Finance has also invited bids to raise INR 7.5 billion through the issuance of bonds maturing on Mar. 16, 2029. Other issuers, including Hero Fincorp, Vedika Credit Capital, and Finnable Credit, will also tap the market to raise funds. Dealers anticipate subdued activity, skewed to the downside, as market players wait for clarity on the Iran-US-Israel conflict.

UDAY BONDS

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In the secondary market, four Ujwal DISCOM Assurance Yojana bonds aggregating to INR 96.30 million were traded Thursday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

* INR 80.00 million of Uttar Pradesh's 8.63%, 2029 bond was dealt at 6.7800%

* INR 11.30 million of Telangana's 8.08%, 2029 bond was dealt at 6.7798%

* INR 3.00 million of Uttar Pradesh's 8.44%, 2029 bond was dealt at 7.1093%

* INR 2.00 million of Tamil Nadu's 8.04%, 2029 bond was dealt at 6.6807%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Avishek Dutta

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