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Informist, Tuesday, May 19, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on three-year corporate bonds ended lower Tuesday, tracking the yields on Indian government bonds, dealers said. Yields were also down on the back of positive sentiment around expectations of higher surplus transfer from the Reserve Bank of India for 2025-26 (Apr-Mar), a dealer at a private-sector bank said.

 

The yield on the 10-year 6.48%, 2035 bond settled at 7.11% Tuesday, down from 7.13% Monday. The three-year bonds of the National Bank for Agriculture and Rural Development were dealt in the range of 7.85-7.90%, down 5 basis points from 7.90-7.95% Monday. The yields on NABARD's five-year bonds were at 7.90-7.95%, compared with 7.88-7.95% Monday. The indicative yield on the 10-year NABARD bonds was 7.90%, compared with 7.85-7.95% on Monday.

 

"Insurance companies bought two- and three-year bonds of NBFCs (non-banking financial companies). Mutual funds sold bonds in the same segment," a dealer at a large public sector bank said. 

 

The RBI is likely to announce the surplus transfer to the government this week. Informist on Tuesday reported that the finance ministry hopes to receive more than INR 3 trillion in surplus from the RBI for FY26. A higher-than-expected dividend could lower government borrowing through bonds and potentially reduce market yields.

 

Bonds worth INR 38.55 billion were issued Tuesday, down from INR 45.50 billion Monday. In the secondary market, deals aggregating INR 101.02 billion were recorded on the National Stock Exchange and BSE combined Tuesday, marginally up from INR 99.18 billion Monday.

 

Among the actively traded bonds, INR 11.8 billion worth of National Bank for Financing Infrastructure and Development's bonds were traded and INR 3.25 billion worth of Bajaj Finance's papers were traded. Papers issued by NABARD, Dvara Kshetriya Gramin Financial Services, Hinduja Leyland Finance, and Cholamandalam Investment and Finance Co. were also actively traded.

 

On Wednesday, Tata Capital will tap the market to raise up to INR 40 billion by reissuing the August 2031 bonds. Cholamandalam Investment and Finance Co. and NIIF Infrastructure Finance will seek bids to raise up to INR 10 billion each by reissuing June 2029 and August 2031 bonds, respectively. ICICI Home Finance plans to raise up to INR 6.5 billion through three-year bonds, while Nuvama Wealth and Investment plans to raise up to INR 3 billion. Keertana Finserv and Navi Finserv have also sought bids to raise up to INR 1.5 billion and INR 4.25 billion, respectively, both through reissues. 

 

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 2 million was traded Tuesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

* INR 2 million of Tamil Nadu's 8.04%, 2029 bond was dealt at 7.3308%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Tuesday	Monday
Three-year	7.85-7.90%	7.90-7.95%
Five-year	7.90-7.95%	7.88-7.95%
10-year	7.90%	7.85-7.95%

 

End

 

Edited by Saji George Titus

 

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