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Informist, Thursday, May 14, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on three- and five-year corporate bonds ended broadly steady Thursday after moving in a narrow range throughout the day, as bond sales by mutual funds facing redemption pressure were offset by purchases by traders amid improved sentiment, dealers said. Market sentiment remained positive amid no signs of escalation in the West Asian conflict and Brent crude oil prices holding near $105 per barrel, they said.

 

Bonds maturing in up to three years were most actively traded and a few companies sold three- and four-year bonds due to liquidity pressure, dealers said.

 

The rates on the three-year bonds of the National Bank for Agriculture and Rural Development were at 7.68-7.72% Thursday, little changed from 7.70% Wednesday. The rates on the five-year NABARD bonds were at 7.73-7.77%, also broadly unchanged from 7.72-7.78% Wednesday. The indicative rate on the 10-year NABARD bonds rose marginally to 7.78-7.80% from 7.75-7.77% Wednesday, dealers said. 

 

Bonds worth INR 5 billion were issued Thursday, sharply down from INR 85.05 billion Wednesday. In the secondary market, deals aggregating INR 105.82 billion were recorded on the National Stock Exchange and BSE combined, up from INR 80.70 billion Wednesday.

 

Among the actively traded bonds, INR 3.05 billion worth of NABARD's papers were traded and INR 2.95 billion worth of Apex Homes' bonds were traded. Papers issued by Bajaj Housing Finance, Keertana Finserv, Aditya Birla Finance, and Kerala Infrastructure Investment Fund Board were also actively traded.

 

On Friday, NABARD will tap the market to raise up to INR 70 billion through the reissue of a July 2029 bond. The bond's cut-off is expected to be 7.70-7.75%, according to market participants.

 

Apart from NABARD, HDB Financial Services plans to raise up to INR 16.75 billion through three-year bonds, while Bajaj Housing Finance plans to raise up to INR 10 billion through three-year bonds. Keertana Finserv has sought bids for the resissue of its September 2027 bonds to raise up to INR 1.5 billion and Edel Finance Co. has invited bids to raise INR 500 million by reissuing a zero-coupon bond.

 

Yields on corporate bonds may rise next week as mutual funds continue to sell amid sustained redemption pressure, a dealer at a brokerage firm said. Bonds maturing in up to three years are likely to see the most impact. 

 

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 900 million was traded Thursday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

* INR 900 million of Haryana's 8.18%, 2026 bond was dealt at 5.4737%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Thursday	Wednesday
Three-year	7.68-7.72%	7.70%
Five-year	7.73-7.77%	7.72-7.78%
10-year	7.78-7.80%	7.75-7.77%

 

End

 

US$1 = INR 95.76

 

Edited by Saji George Titus

 

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