India Corporate Bonds
Yields up tracking rise in gilts; MPC decision eyed
This story was originally published at 20:55 IST on 2 April 2026
Register to read our real-time news.Informist, Thursday, Apr. 2, 2026
By Nandini Sinha
MUMBAI- Yields in the corporate bond market rose Thursday tracking the rise in yields on government bonds, dealers said. Market participants have adopted a wait-and-watch approach as they track the Reserve Bank of India's Monetary Policy Committee's decision and commentary next week, dealers said. Bonds maturing in up to three years were traded the most, dealers added.
The 10-year benchmark 6.48%, 2035 gilt closed at a yield of 7.1329%, up nearly 10 basis points from the previous session. Indicative yields on three-year bonds of the National Bank for Agriculture and Rural Development rose to 7.67-7.70% from 7.58-7.66% Monday, while those on five-year NABARD bonds were 7.73-7.75%, up from 7.69-7.70%. The yields on 10-year NABARD bonds rose to 7.77-7.80% from 7.72-7.75%. Rates on 10-year bonds rose as there were a few buyers and those looking to sell were willing to do so at higher rates, dealers said.
At 1512 IST, deals aggregating INR 50 billion were recorded in the secondary market on the National Stock Exchange and BSE combined Thursday, sharply down from INR 94.61 billion Monday. "Volumes were low as it's just the beginning of the new financial year," a dealer at a private-sector bank said. Trading volumes were low as Thursday was the only trading session for the rest of the week.
Papers issued by Namra Finance Ltd., National Bank for Agriculture and Rural Development, Navi Finserv Ltd., Aditya Birla Finance Ltd., Andhra Pradesh Mineral Development Corp. Ltd., and Kerala Infrastructure Investment Fund Board were traded the most.
In the primary market, bond issuances fell sharply to INR 750 million Thursday from INR 53 billion Monday. Navi Finserv Ltd. plans to raise up to INR 1 billion Monday through bonds maturing on Oct. 8, 2027.
Mutual funds bought bonds mostly in the three-year segment, while pension funds were not very active Thursday, the dealer at the private-sector bank said. Insurance companies sold bonds maturing in up to 10 years, a dealer at a brokerage firm said. Some foreign institutional investors sold papers maturing between two and three years. "Levels are not very much established since it's the start of the financial year and companies don't have much cash with them right now. There are few players on the buying side," the dealer said.
Dealers do not expect companies to announce significant fundraising plans before the Monetary Policy Committee's meeting scheduled for Apr. 6-8.
UDAY BONDS
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In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 1 million was traded Thursday, according to data on the RBI's Negotiated Dealing System-Order Matching system.
* INR 1.00 million of Punjab's 8.47%, 2029 bond was dealt at 7.3275%
BENCHMARK LEVELS FOR CORPORATE BONDS:
Tenure | Thursday | Monday |
Three-year | 7.67-7.70% | 7.58-7.66% |
Five-year | 7.73-7.75% | 7.69-7.70% |
10-year | 7.77-7.80% | 7.72-7.75% |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
With inputs from Vaishali Tyagi
Edited by Tanima Banerjee
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