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Informist, Friday, May 8, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on three- and five-year corporate bonds ended broadly steady on Friday after volatile intraday movement, tracking a rise in yields on government bonds and crude oil prices, dealers said. Mutual funds remained the most active participants, actively buying papers maturing in up to three years, particularly the 2027 segment.

 

"Rates were up in the morning...they went down during the day, later they rose around 1-2 bps (basis points)," a dealer at a public sector bank said. "G-sec (government securities) was up, oil prices were up, so the market reacted to all this. It (yields on corporate bonds) was up due to the uncertainty (over the US-Iran war)." The yield on the benchmark 10-year 6.48%, 2035 government bond ended at 6.98%, up 5 bps from the previous close.

 

The National Bank for Agriculture and Rural Development's three-year bonds ended at 7.45-7.57% Friday, slightly higher than 7.45-7.55% Thursday, while five-year NABARD bonds were unchanged at 7.60-7.65%. The 10-year NABARD bonds were not traded Friday. The indicative yields on the bonds were 7.60-7.70%, down 10 bps from 7.65-7.75% Thursday, dealers said.

 

At 1500 IST, deals aggregating INR 35.66 billion were recorded in the secondary market on the National Stock Exchange and BSE combined Friday, sharply lower than INR 49.41 billion Thursday. Among the actively traded bonds on Friday, INR 3.03 billion worth of Apex Homes Pvt. Ltd.'s papers were traded and INR 3.55 billion of NABARD's bonds were traded. Papers issued by the Small Industries Development Bank of India, ICICI Home Finance Co. Ltd., Krazybee Services Pvt Ltd., and Hyderabad Metropolitan Development Authority were also actively traded.

 

Bonds worth INR 10.55 billion were issued Friday, down from INR 15.68 billion worth of papers issued Thursday, dealers said. On Monday, Bajaj Housing Finance Ltd. plans to raise up to INR 15 billion through five-year bonds, while Tata Capital Ltd. plans to raise up to INR 17.70 billion through two bonds, including a reissue, dealers said. Bajaj Finance Ltd. will also issue two bonds Monday, including a reissue, eyeing up to INR 90 billion. Keertana Finserv Ltd. plans to raise up to INR 2.5 billion through the reissue of bonds, while Mahindra & Mahindra Financial Services Ltd. plans to raise up to INR 10 billion on Monday. 

 

Corporate bond issuances have risen as investor appetite improved after the sharp fall in yields on Wednesday. "All (companies) came together (with issuances). Expect more issuances by NBFCs," the dealer at the state-owned bank said. 

 

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 5 million was traded Friday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

* INR 5 million of Telangana's 8.04%, 2031 bond was dealt at 7.7478%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Friday	Thursday
Three-year	7.45-7.57%	7.45-7.55%
Five-year	7.60-7.65%	7.60-7.65%
10-year	7.60-7.70%	7.65-7.75%

 

End

 

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

 

Edited by Avishek Dutta

 

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