More Stories

Informist, Friday, Apr. 10, 2026

By Nandini Sinha, Meera Nair, and Vaishali Tyagi

MUMBAI – Yields in the corporate bond market ended steady due to weak investor sentiment at the start of the financial year 2026-27 (Apr-Mar), dealers said. Bonds maturing in up to five years were traded the most, they said. Dealers expect the current levels to hold and weak investor sentiment to continue in the near term.

Mutual funds, pension funds, insurance companies, and banks sold and purchased bonds. Participants actively traded to book profits by selling low yielding corporate bonds after the government bond market rallied as the cut-off price on the 6.48%, 2035 bond at the auction was slightly higher than market expectations, dealers said. "It is the apt time to add g-secs (government securities) to their investment books," a dealer at a private-sector bank said. The Reserve Bank of India received bids worth INR 1.09 trillion in the INR-340-billion auction. 

Dealers said activity was very limited in the 10-year segment, largely due to the uncertainty around the war in west Asia. "Even the life insurance companies who generally used to trade in longer tenures shifted to shorter tenure especially in five-year segments," a dealer at a brokerage firm said. 

Indicative yields on the three-year and five-year bonds of the National Bank for Agriculture and Rural Development remained flat Friday at 7.40-7.45% and 7.50-7.55%, respectively. Yields on 10-year NABARD bonds rose by 3 basis points to 7.63-7.68% from 7.60-7.65% Thursday. However, yields rose earlier during the day in the 10-year segment as few traders sold 10-year corporate bonds and flocked to the government bond market to participate in the benchmark 6.48%, 2035 gilt at the auction Friday, dealers said.

Deals aggregating to INR 127.23 billion were recorded in the secondary market Friday on the National Stock Exchange and BSE combined, significantly down from INR 225.71 billion Thursday. 

Paper issued by NABARD, Telangana State Industrial Infrastructure Corp. Ltd., Lucina Land Development Ltd., Andhra Pradesh State Beverages Corp. Ltd., Piramal Finance Ltd., and Hyderabad Metropolitan Development Authority were traded the most.

No corporate bond issuance was placed in the primary market Friday for the second consecutive day, dealers said. "People are waiting for board approvals to announce their fundraising plans, and may see an uptick in volume from the third week (of April) onwards," a dealer at another brokerage firm said. 

Merchant bankers said that corporate bond activity was limited, which also kept the yields steady after the RBI announced a 7-day variable rate reverse repo auction. At the auction, the RBI accepted offers worth INR 2 trillion. The net liquidity absorbed by the RBI, an indication of liquidity surplus in the banking system, was INR 4.55 trillion Thursday, almost unchanged from INR 4.57 trillion. This level of surplus liquidity is at the highest since May 2022.  

UDAY BONDS

No Ujwal DISCOM Assurance Yojana bond was traded Friday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

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

Edited by Akul Nishant Akhoury

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.