India Corporate Bonds
Short-term bond yields fall as crude oil prices ease
This story was originally published at 19:49 IST on 27 May 2026
Register to read our real-time news.Informist, Wednesday, May 27, 2026
By Nandini Sinha
MUMBAI – Yields on three- and five-year corporate bonds ended lower for the fourth consecutive day, tracking a sharp fall in crude oil prices, dealers said. Market participants also tracked developments in the war in West Asia, which did not escalate despite Iran's warning after the US carried out strikes in southern Iran.
At 1703 IST, the Brent crude oil futures for July delivery traded at $96.62 per barrel, down from $99.58 Tuesday.
The yields on three-year bonds issued by the National Bank for Agriculture and Rural Development fell to 7.82-7.84% from 7.88-7.93% Tuesday. The yields on NABARD's five-year bonds fell 10 basis points to 7.80% from 7.88-7.90% Tuesday. The indicative yield on NABARD's 10-year bonds was unchanged at 7.80-7.85%.
"In the morning, trades opened at yesterday's (Tuesday's closing) levels, but fell during the day because of g-secs (fall in the yields on Indian government bonds)," a dealer at a state-owned bank said. Government bond yields had fallen during the day, tracking an intraday fall in crude oil prices, but ended slightly higher as traders booked profits. "The US-Iran situation is stable," the dealer said, referring to no fresh escalation in the war. The dealer also said that corporate bond yields may decline after the Reserve Bank of India's Monetary Policy Committee meeting next week, as market participants do not expect a repo rate hike.
State-owned REC may issue a floating-rate bond, market participants said. REC will be the first state-owned entity to issue floating-rate bonds in the current financial year (Apr-Mar), following a series of such papers issued by the private sector this month.
Bonds worth INR 89.30 billion were issued on Wednesday, sharply up from INR 48.40 billion of papers issued on Tuesday. In the secondary market, deals aggregating INR 141.64 billion were recorded on the National Stock Exchange and BSE combined, up from INR 126.61 billion Tuesday.
Alaknanda Hydro Power Co.'s bonds worth INR 20.31 billion and REC bonds worth INR 7.71 billion were traded Wednesday. Papers issued by NABARD, Bajaj Finance, and Hyderabad Metropolitan Development Authority were also actively traded.
Bonds worth INR 3.32 billion are expected to be issued Friday. Of this, Edel Finance Co. will tap the market to raise INR 1 billion by reissuing three-year zero-coupon bonds, while Mac Charles Hub Projects will seek bids to raise INR 900 million by reissuing zero-coupon bonds maturing in December 2030. Financial markets are closed on Thursday for Id-ul-Zuha.
UDAY BONDS
No Ujwal DISCOM Assurance Yojana bond was traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching system.
BENCHMARK LEVELS FOR CORPORATE BONDS:
Tenure | Wednesday | Tuesday |
Three-year | 7.82-7.84% | 7.88-7.93% |
Five-year | 7.80% | 7.88-7.90% |
10-year | 7.80-7.85% | 7.80-7.85% |
End
US$1 = INR 95.69
Edited by Saji George Titus
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