India Corporate Bonds
Ylds rise tracking gilts; volume up as MFs sell
This story was originally published at 19:10 IST on 29 April 2026
Register to read our real-time news.Informist, Wednesday, Apr. 29, 2026
By Nandini Sinha
MUMBAI – The rise in the yields on government bonds and crude oil prices weighed on the yields on corporate bonds as they remained elevated Wednesday, dealers said. Mutual funds sold corporate bonds due to redemption pressures, dealers said.
The yield on the 10-year benchmark 6.48%, 2035 bond ended at 6.9928% Wednesday, up from 6.9837% Tuesday. Brent crude oil prices for June delivery soared to the month's high of $115 per barrel Wednesday.
Volumes in the secondary market were lower from Tuesday as dealers didn't want to keep their trade books open ahead of their travel for the Fixed Income Money Market and Derivatives Association of India's annual conference scheduled in the Netherlands from Apr. 30 to May 3, a fund manager at a mutual fund said.
In the secondary market, indicative yields on three-year bonds of the National Bank for Agriculture and Rural Development were 7.58-7.63%, up from 7.55-7.60% Tuesday, dealers said. Yields on the five-year bonds of NABARD were at 7.65-7.71% from 7.66-7.71% in the previous trading session, while the 10-year bonds of NABARD were 7.70-7.75% from 7.72-7.75% Tuesday. "Bonds with 1-month maturity traded at around 6.05%, around 10 bps up from yesterday," a dealer at a private sector bank said.
At 1500 IST, deals aggregating INR 47.24 billion were recorded in the secondary market on the National Stock Exchange and BSE combined Wednesday, up from INR 42.28 billion Tuesday. Papers issued by NABARD, Kosamattam Finance Ltd., Shriram Finance Ltd., Tata Capital Financial Services Ltd., The Andhra Pradesh Mineral Development Corp. Ltd., and Kerala Infrastructure Investment Fund Board, were the most actively traded Wednesday.
Bond issuances in the primary market were sharply down at INR 12 billion Wednesday from INR 71.34 billion Tuesday. Among those planning to raise funds in the primary market Monday include Master Capital Services Ltd. and Clix Capital Services Pvt. Ltd., which plan to raise INR 300 million and INR 750 million, respectively. Friday, financial markets are shut on account of Maharashtra Day.
Dealers expect rates to remain flattish but elevated with an upward bias Thursday. "If anything major happens (geopolitical development), the rates will remain at similar levels as today," a dealer at a brokerage firm said.
UDAY BONDS
No Ujwal DISCOM Assurance Yojana bond was traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching system.
BENCHMARK LEVELS FOR CORPORATE BONDS:
Tenure | Wednesday | Tuesday |
Three-year | 7.58-7.63% | 7.55-7.60% |
Five-year | 7.65-7.71% | 7.66-7.71% |
10-year | 7.70-7.75% | 7.72-7.75% |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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