India Corporate Bonds
Yields fall sharply tracking gilts, crude oil prices
This story was originally published at 20:20 IST on 6 May 2026
Register to read our real-time news.Informist, Wednesday, May 6, 2026
By Nandini Sinha
MUMBAI – Yields on Indian corporate bonds fell Wednesday tracking the fall in the yields on government bonds and in crude oil prices, dealers said. Yields on three-year and five-year bonds fell the most--by 12-13 basis points--while the fall in the yield on 10-year bonds was a more modest 10 bps even as traded volumes jumped sharply.
At 1500 IST, deals aggregating INR 68.68 billion were recorded in the secondary market on the National Stock Exchange and BSE combined Wednesday, up sharply from INR 54.55 billion Tuesday. Papers issued by the National Bank for Agriculture and Rural Development, the Small Industries Development Bank of India, Indostar Capital Finance Ltd., Hinduja Leyland Finance Ltd., and Hyderabad Metropolitan Development Authority were the most traded.
In the secondary market, rates on three-year bonds of NABARD were 7.45-7.48% Wednesday, down 12 basis points from 7.67-7.75% Tuesday. Yields on five-year NABARD bonds were 7.55-7.60%, down 13 bps from 7.68-7.75% Tuesday. Yields on 10-year NABARD bonds were down 10 bps at 7.60-7.65% from 7.70-7.75% Tuesday, mirroring the 10 bps fall in the yield on the 10-year benchmark 6.48%, 2035 government bond which ended at 6.92%. At 1722 IST, Brent crude oil futures for July delivery traded at $98.40 per barrel, sharply down from the day's high of $109.02 per barrel.
The 10-year segment saw higher activity Wednesday amid improvement in investor appetite. "Yields (on corporate bonds) could fall around 28-29 bps across tenures," a dealer at a public sector bank said. Dealers expect corporate bond issuances to rise if the US and Iran agree to a peace deal on ending the war in West Asia. Public sector undertakings, including REC Ltd. and Power Finance Corp. Ltd., could soon issue corporate bonds, dealers said, but did not provide any clarity on the expected tenure or rate on the bonds.
Muthoot Finance Ltd. plans to raise up to INR 2.5 billion through the reissue of bonds maturing on Jan. 16, 2036 in the primary market Thursday, while Hiranandani Financial Services Ltd. plans to raise INR 2 billion through three-year bonds, dealers said. Kogta Financial (India) Ltd. plans to raise INR 3.6 billion through bonds maturing in March 2028.
UDAY BONDS
In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 1 million was traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.
* INR 1 million of Punjab's 8.47%, 2029 bond was dealt at 7.2262%
BENCHMARK LEVELS FOR CORPORATE BONDS:
Tenure | Wednesday | Tuesday |
Three-year | 7.45-7.48% | 7.67-7.75% |
Five-year | 7.55-7.60% | 7.68-7.75% |
10-year | 7.60-7.65% | 7.70-7.75% |
End
US$1 = INR 94.61
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Pankaj Aher and Deepshikha Bhardwaj
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