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Informist, Friday, May 29, 2026

 

By Nandini Sinha

 

MUMBAI – Corporate bond yields ended flat Friday as traders kept activity limited amid uncertainty over the end of the US-Iran war, with no official confirmation by the two countries on the peace deal, dealers said. However, market sentiment turned little positive as crude oil prices remained below the crucial $95 per barrel, dealers said. Papers maturing in up to five years were the most actively traded, with mutual funds being the most active participants. At 1700 IST, Brent crude oil futures for July delivery traded at $91.98 per barrel, down from $93.71 Wednesday. 

 

"Buyers (of corporate bonds) are still cautious because (US President Donald) Trump has not signed any deal (agreement to extend the ceasefire) yet," a dealer at a state-owned bank said. "Iran has also not confirmed anything." US Vice President JD Vance's comments on the status of the ceasefire agreement also weighed on investor sentiment. "I can't guarantee that we're going to get there (on finalising a peace deal with Iran), but right now I feel pretty good about it," Vance told reporters. 

 

Bonds worth INR 3.32 billion were issued on Friday, sharply down from INR 89.30 billion of papers issued on Wednesday. In the secondary market, deals aggregating INR 60.82 billion were recorded on the National Stock Exchange and BSE combined at 1500 IST, sharply down from INR 77.22 billion at the same time Wednesday.

 

The yield on the three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.83-7.85%, marginally up from 7.82-7.84% Wednesday. The yield on NABARD's five-year bonds was unchanged at 7.80%. The indicative yield on NABARD's 10-year bonds was 7.80%, compared with 7.80-7.85% Wednesday.

 

"NABARD's September 2028 paper was dealt at 7.79%," a dealer at a brokerage firm said. "Volumes were not much...there wasn't much activity today." The rates on corporate bonds are expected to remain steady and volumes are expected to be muted till the Reserve Bank of India's Monetary Policy Committee meeting next week.

Alaknanda Hydro Power Co. Ltd.'s bonds worth INR 20.31 billion and NABARD papers worth INR 6.76 billion were actively traded Friday. Papers issued by REC Ltd., IIFL Finance Ltd., Tata Capital Housing Finance Ltd., and Andhra Pradesh State Beverages Corp. Ltd. were also actively traded. 

 

No significant corporate bond issuances are lined up for Monday. Reel and Time Heights Pvt. Ltd. plans to raise INR 950 million through four-year bonds. The coupon on the bond, rated 'B-' by India Ratings and Research, is fixed at 18% and will be paid on maturity on Jun. 1, 2030.  

 

A total of INR 96.72 billion worth of deals were recorded on the National Stock Exchange and BSE combined Friday, sharply down from INR 141.64 billion Wednesday.

 

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 7.6789%

 

BENCHMARK LEVELS FOR CORPORATE BONDS: 

 

Tenure	Friday	Wednesday
Three-year	7.83-7.85%	7.82-7.84%
Five-year	7.80%	7.80%
10-year	7.80%	7.80-7.85%

 

End

 

US$1 = INR 95.00

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

 

Edited by Deepshikha Bhardwaj

 

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