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Informist, Tuesday, Apr. 28, 2026

By Nandini Sinha and J. Navya Sruthi

MUMBAI – Yields on corporate bonds remained elevated Tuesday tracking the rise in the yields on government securities and Brent crude oil prices, dealers said. Brent crude oil prices rose to the month's high of $112.70 per barrel Tuesday.

The yield on the 10-year benchmark 6.48%, 2035 bond ended at 6.9837%, up over 4 basis points from the previous close. Yields on three-year bonds of the National Bank for Agriculture and Rural Development in the secondary market of corporate bonds rose 5 bps to 7.55-7.60% Tuesday from 7.50-7.55% Monday, dealers said. Yields on the five-year bonds of NABARD rose three bps to 7.66-7.71% from 7.63-7.68% Monday. Indicative yields on the 10-year bonds of NABARD were 7.72-7.75%, up from 7.68-7.72% Monday, dealers said. 

Most issuers of corporate bonds currently prefer to issue in the three-year segment as the longer-term bonds reflect a rate hike. "After SIDBI (Small Industries Development Bank of India) and NABARD, NaBFID (National Bank for Financing Infrastructure and Development) might join them. Most issuers think it is better to raise funds now, as going forward rates would be higher. We are expecting a rate hike in Q3 or Q4 this (financial) year. We may see more issuances in May and June before rates rise further," a dealer at a private sector bank said.

If the US and Iran agree to end the war, the yield on the 10-year government bond will fall 15 bps and corporate bond yields will correct by 20 bps, a dealer at a private sector bank said. "Yields on bonds up to one year (maturity) may fall by 6-7 bps as these have already corrected from March levels as liquidity (in the banking system) improved," the dealer said.

However, yields did not correct as much in bonds with maturities of 3 years and above as there is an inflation factor which is playing in here, the dealer said. "No further rate cuts are also reflecting in the prices (of corporate bonds)," the dealer said. "G-sec (government securities) yields will be lower if war ends as pace of inflation creeping up is slower," the dealer said.

Deals aggregating INR 71.77 billion were recorded in the secondary market on the National Stock Exchange and BSE combined Tuesday, down from INR 85.79 billion Monday. Papers issued by Namra Finance Ltd., Krazybee Services Ltd., IIFL Finance Ltd., Kerala Infrastructure Investment Fund Board, Hinduja Leyland Finance Ltd., and Andhra Pradesh State Beverages Corp. Ltd. were the most actively traded. 

Bond issuances in the primary market rose to INR 71.34 billion Tuesday from INR 26.25 billion Monday. Small Industries Development Bank of India set a cut-off at 7.61% on the bonds maturing on Aug. 10, 2029, and raised INR 30.25 billion at the auction Tuesday. The state-owned financial institution had planned to raise up to INR 60 billion through the bonds.

Among those planning to raise funds in the primary market Wednesday include Manappuram Finance Ltd. and Aditya Birla Capital Ltd. which plan to raise up to INR 9.5 billion and up to INR 2.5 billion, respectively. 

UDAY BONDS

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

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Akul Nishant Akhoury

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