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Informist, Wednesday, Jun. 10, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds ended higher Wednesday, tracking a rise in yields on Indian government bonds following US President Donald Trump's threat against Iran, dealers said. Investor sentiment dampened towards the end of trading hours after Trump said on Truth Social that Iran "will have to pay the price" for taking "too long" to negotiate a peace deal. 

 

The yield on the 10-year benchmark 6.48%, 2035 Indian government bond settled at 6.9353% Wednesday, up nearly 3 basis points from Tuesday. While corporate bond yields fell in early trade hours, yields rose towards the end due to Trump's comments, a dealer at a large state-owned bank said. 

 

Dealers also attributed the rise in corporate bond yields to the reissue of the National Bank for Agriculture and Rural Development's July 2029 bonds. The state-run entity set a cut-off of INR 100.25 or 7.3442% on the 7.44%, July 2029 bond reissue. It accepted bids worth INR 67.80 billion, against plan to raise up to INR 70 billion. 

 

The yield on three-year bonds issued by NABARD was 7.40%, up from 7.35-7.39% Tuesday. The yield on NABARD's five-year bonds was 7.40%, up from 7.37% Tuesday. The 10-year bonds of NABARD were not traded Wednesday. The indicative yield on its 10-year bonds were 7.50-7.55%.

 

Volumes in the secondary market of corporate bonds more than halved since Tuesday as investors flocked to the primary market for the NABARD reissue. Deals worth INR 48.36 billion were recorded on the National Stock Exchange and BSE combined at 1500 IST Wednesday, down from INR 98.45 billion Tuesday.

 

Bonds worth INR 126.55 billion were issued Wednesday, sharply higher than INR 1.5 billion worth of papers issued Tuesday. In the secondary market, NABARD papers worth INR 29.37 billion were traded. Papers issued by Manappuram Finance Ltd., REC Ltd., Power Finance Corp. Ltd., and ICICI Bank Ltd. were also actively traded.  

 

On Thursday, Muthoot Finance Ltd. will seek bids to raise up to INR 27.50 billion through five-year bonds, while Bajaj Housing Finance Ltd. will seek bids for up to INR 20 billion. CreditAccess Grameen Ltd. plans to raise INR 1 billion through the issuance of two-year bonds.

 

Bajaj Finance Ltd. plans to raise up to INR 85 billion through two bonds on Thursday, including a reissue. The financier plans to raise up to INR 25 billion through the reissuance of 8.00% May 2031 bonds. The company also plans to raise up to INR 60 billion through three-year bonds maturing on Jun. 12, 2029. 

 

Traders will track any overnight developments in the US-Iran war for the trajectory of corporate bond yields Thursday. "It depends on the risk sentiment and what is the intensity (of escalation in the US-Iran conflict)," the dealer at the public sector bank said.  

 

After NABARD, another public sector undertaking, National Bank for Financing Infrastructure and Development, will tap the corporate bond market on Friday through the issuance of two bonds with different maturities. The finance institution plans to raise up to INR 30 billion through bonds maturing in July 2029. NaBFID also plans to raise up to INR 30 billion through 10-year bonds. Both the issues have a base size of INR 5 billion and a greenshoe option of INR 25 billion. 

 

A total of deals aggregating INR 151.36 billion were recorded on the National Stock Exchange and BSE combined Wednesday, sharply lower than INR 185.99 billion on Tuesday.

 

UDAY BONDS

In the secondary market, five Ujwal DISCOM Assurance Yojana bonds worth INR 33.80 million were traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

* INR 19 million of Punjab's 8.61%, 2030 was dealt at 7.2863%

* INR 7 million of Tamil Nadu's 8.04%, 2029 bond was dealt at 7.1307%

* INR 3 million of Uttar Pradesh's 8.49%, 2028 bond was dealt at 7.0751%

* INR 2.50 million of Uttar Pradesh's 8.35%, 2029 bond was dealt at 7.1266%

* INR 2.30 million of Punjab's 8.65%, 2028 bond was dealt at 7.2327%

 

BENCHMARK LEVELS FOR CORPORATE BONDS: 

 

Tenure	Wednesday	Tuesday
Three-year	7.40%	7.35-7.39%
Five-year	7.40%	7.37%
10-year	7.50-7.55%	--

 

End

 

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

 

Edited by Avishek Dutta

 

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