India Corporate Bonds
Yields steady, track rise in CD, CP yields
This story was originally published at 19:03 IST on 7 July 2026
Register to read our real-time news.Informist, Tuesday, Jul. 7, 2026
By Nandini Sinha
MUMBAI – Yields on corporate bonds ended broadly steady Tuesday as market participants actively bought and sold papers, continuing to churn portfolios. Traders also tracked a rise in yields on certificates of deposit and commercial papers, which prevented a sharp fall in corporate bond yields.
Papers maturing in 2027–28 segments were the most actively traded, with a high supply of non-banking finance companies' papers seen Tuesday. Banks were seen buying and selling papers, while mutual funds mostly sold corporate bonds.
The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.23-7.25%, against 7.24-7.26% on Monday, while the yield on NABARD's five-year bonds was 7.24-7.25%, down from 7.25-7.27% Monday.
Market participants are awaiting clarity on the inflows banks would get through the foreign currency non-resident dollar-denominated bank deposits, pushing up yields on CD and CPs Tuesday, dealers said. Lack of demand for short-debt instruments also pushed up yields on CD and CPs.
In the secondary market, deals worth INR 102.38 billion were recorded on the National Stock Exchange and BSE combined, down from INR 115.61 billion Monday. Papers issued by REC, Power Finance Corp., Bajaj Housing Finance, National Bank for Financing Infrastructure and Development and the Small Industries Development Bank of India were actively traded.
Bonds worth INR 25.50 billion were issued Tuesday, with NTPC Green Energy being the biggest issuer. The company's INR 25-billion, 10-year bonds were fully subscribed, with the coupon set at 7.27%. NTPC Green Energy received 48 bids aggregating INR 34.43 billion in the range of 6.85-7.51%, according to the bid book accessed by Informist.
On Wednesday, SIDBI will seek bids for up to INR 80 billion for bonds maturing in November 2029. Market participants expect the cut-off on SIDBI bonds to be between 7.20% and 7.26%.
Several non-banking financial companies are slated to tap the corporate bond market Wednesday. Shriram Finance will seek bids for up to INR 20 billion through two bonds, including a reissue. HDB Financial Services plans to raise up to INR 7 billion through two bonds, including a reissue.
PNB Housing Finance has sought bids for INR 5 billion through the issuance of bonds maturing in August 2029, while Godrej Finance will seek to raise up to INR 4 billion through the issuance of two-year bonds maturing on Jul. 5, 2028. MAS Financial Services will seek to raise up to INR 2.5 billion through bonds maturing in June 2028, while SK Finance has sought bids for INR 2 billion through the issuance of two-year bonds.
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 |
7.23-7.25% | 7.24-7.26% |
|
Five-year |
7.24-7.25% | 7.25-7.27% |
|
10-year |
-- | -- |
End
Edited by Avishek Dutta
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