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Informist, Monday, May 4, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds rose marginally Monday, tracking a rise in government bond yields and crude oil prices, dealers said. Yields on government securities climbed as crude prices spiked, triggered by reports that Iran had struck a US warship, dealers said. Brent crude for July delivery briefly shot up to over $113 a barrel from a low of below $107 per barrel. 

 

"(Corporate bond) market was mostly steady today (Monday) for most of the day, however yields rose after rise in G-sec yields went up in the second half after news reports said Iran fired two missiles at a US warship near Jask Island in the Strait of Hormuz," a dealer at a brokerage firm said. The yield on the 10-year benchmark 6.48%, 2035 government bond ended at 7.0194% Monday, up from 7.0148% Thursday. At 1734 IST, Brent crude oil futures for July delivery traded at $111.24 per barrel.

 

In the secondary market, rates on three-year bonds of National Bank for Agriculture and Rural Development were 7.65-7.68%, up from 7.60-7.65% Thursday, while yields on 10-year bonds were at 7.72-7.77%, against 7.70-7.75%. Dealers did not share any rates for the five-year segment.

 

Dealers said bonds with maturities of up to three years were the most actively traded Monday. "These days, even five-year segment is seeing very less demand, leave 10-year segment... most trading is up to three-year and some trading in four-year paper. People have no clarity on outlook of the bond market," said the dealer quoted earlier.

 

On Monday, deals aggregating INR 96.16 billion were recorded in the secondary market on the National Stock Exchange and BSE combined, up from INR 87 billion Thursday. Papers issued by Indiabulls Housing Finance Ltd., Vedika Credit Capital Ltd., Paisalo Digital Ltd., IIFL Samasta Finance Ltd., The Andhra Pradesh Mineral Development Corp. Ltd., and Hyderabad Metropolitan Development Authority were traded the most. 

 

Insurance companies were buying papers above three years maturity, while there were not many deals in the long-term segment, a dealer at another broking firm said. "There was not much volume today (Monday) in the corporate bonds market. Yields here did not move as much, tracking gilt yields after Iran's attack on (the) US warship. So tomorrow (Tuesday), we can expect corporate bond yields to rise by 3-4 bps (basis points) tracking this and overnight developments," a dealer at a large state-owned bank said. 

 

Bonds worth INR 21.05 billion were issued in the primary market Monday. Mindspace Business Parks real estate investment trust plans to raise INR 5 billion by issuing 10-year bonds in the primary market Tuesday, dealers said. 

 

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	Thursday
Three-year	7.65-7.68%	7.60-7.65%
Five-year	--	7.65-7.68%
10-year	7.72-7.77%	7.70-7.75%

 

End

 

With inputs from Vaishali Tyagi and J. Navya Sruthi
Edited by Avishek Dutta

 

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