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Informist, Tuesday, Jun. 30, 2026

 

By Nandini Sinha

 

MUMBAI – After falling during the day, yields on corporate bonds inched higher towards the end of trading hours Tuesday and settled broadly unchanged from Monday, dealers said. Insurance companies and banks bought corporate bonds, while mutual funds continued to both buy and sell papers. 

 

Corporate bond yields rose towards the end of trade, tracking a rise in the yields on Indian government bonds and due to sell-off pressure over the National Bank for Agriculture and Rural Development's upcoming issuance on Friday. NABARD plans to raise up to INR 80 billion through the issuance of bonds maturing in December 2029, dealers said. 

The yields on three-year bonds issued by NABARD were in the range of 7.20-7.22%, compared with 7.22% Monday, while the indicative yields on NABARD's five-year bonds were in the range of 7.23-7.27%, against 7.25-7.28% Monday. The indicative yields on NABARD's 10-year bonds were in the range of 7.38-7.42% compared with 7.40-7.42% Monday. 

 

The yield on the 10-year benchmark 6.94%, 2036 bond ended broadly flat after the day's high due to profit-booking, dealers said. Corporate bond yields fell during the day due to optimism over the inclusion of Indian government bonds in the Bloomberg bond index, a dealer at a brokerage firm said. "The market was very volatile, g-sec (government securities) rallied at the last moment," a dealer at a state-owned bank said.

 

In the secondary market, deals aggregating to INR 236.62 billion were recorded on the National Stock Exchange and BSE combined, sharply up from INR 163.97 billion Monday. About secondary market volumes nearly doubling from Monday, the dealer said that banks have been actively purchasing corporate bonds. Papers issued by NABARD, Bajaj Finance, LIC Housing Finance, Hyderabad Metropolitan Development Authority and the State Bank of India were traded actively. 

 

Tuesday, primary market activity moderated with bond issuances aggregating to INR 33 billion, down from INR 47.12 billion worth of issuances slated for Monday. Bajaj Housing Finance raised INR 25 billion through the issuance of four-year bonds, with the coupon set at 7.64%, dealers said. L&T Finance raised INR 3.8 billion through the issuance of 10-year bonds at 8.20%. 

 

On Wednesday, HDB Financial Services will seek bids for up to INR 14.5 billion through the issuance of bonds maturing in June 2029. NIIF Infrastructure Finance will tap the market to raise up to INR 10.5 billion through the issuance of two bonds with different maturities.  

Traders expect corporate bond yields to be range bound Wednesday. However, a rise or fall in Indian government bond yields could impact the yields on corporate bonds, dealers said. 

 

UDAY BONDS

In the secondary market, no Ujwal DISCOM Assurance Yojana bonds were traded Tuesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

BENCHMARK LEVELS FOR CORPORATE BONDS: 

 

Tenure	Tuesday	Monday
Three-year	7.20-7.22%	7.22%
Five-year	7.23-7.27%	7.25-7.28%
10-year	7.38-7.42%	7.40-7.42%

 

End

 

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

 

Edited by Deepshikha Bhardwaj

 

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