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Informist, Monday, Apr. 13, 2026

 

By Nandini Sinha, Meera Nair and J. Navya Sruthi

 

MUMBAI – Yields in the corporate bond market ended slightly higher Monday, tracking a rise in government bond yields and failure of peace talks between the US and Iran, dealers said. However, a sharp rise was prevented due to ample liquidity in the banking system.

 

The net liquidity absorbed by the Reserve Bank of India, a proxy for the liquidity surplus in the banking system, was INR 5.55 trillion Sunday, unchanged from Saturday and the highest since May 2022. Bonds maturing in up to five years were traded the most, while there was hardly any trading in the 10-year segment. Trading in corporate bonds was also lacklustre on Monday due to the auction of state government securities, with most insurers preferring state bonds. 

 

"When there were talks about ceasefire, yields were down 20 bps (basis points). But now again it is back as there is no clarity about the war," an official at an insurance company said. US President Donald Trump has ordered a blockade of the Strait of Hormuz after the US and Iran failed to reach a peace deal in Islamabad.

Indicative yields on the three-year bonds of National Bank for Agriculture and Rural Development were flat at 7.40-7.45% Monday, while those on five-year bonds rose 5 basis points to 7.55-7.60% from 7.50-7.55%. Yields on 10-year NABARD bonds were 7.65-7.70%, against 7.63-7.68% Friday.

 

Deals aggregating to INR 105.49 billion were recorded in the secondary market Monday on the National Stock Exchange and BSE combined, down from INR 127.23 billion Friday. 

 

Papers issued by Spandana Sphoorty Financial Ltd., Housing and Urban Development Corp. Ltd., Satin Finserv Ltd., Adani Enterprises Ltd., National Highways Authority of India, and Kerala Infrastructure Investment Fund Board were traded the most.

 

"As the US has enforced the blockade on the Strait of Hormuz, there was no deal that happened between Iran and the US...and we also have surplus liquidity. Dealers expected better," a dealer from a state-owned bank said. 

 

No corporate bonds were issued in the primary market on Monday for the third consecutive day, dealers said. Aloud Realty Pvt. Ltd. plans to raise INR 400 million Wednesday through bonds maturing on Apr. 30, 2030.

 

Dealers are divided over the outlook on corporate bond rates. Some expect the yields on corporate bonds to harden in the coming weeks due to uncertainty over the war in west Asia. "The war, crude oil price jump – all have affected our market so much. I don't see it going down anytime soon," the dealer from the state-owned bank said. However, a dealer from another public sector bank said that as long as there is ample liquidity in the banking system, yields would be prevented from worsening amid the geopolitical uncertainty.  

 

UDAY BONDS

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

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Monday	Friday
Three-year	7.40-7.45%	7.40-7.45%
Five-year	7.55-7.60%	7.50-7.55%
10-year	7.65-7.70%	7.63-7.68%

 

End

 

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

 

Edited by Avishek Dutta

 

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