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Informist, Wednesday, Jul. 8, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds ended sharply higher across tenures Wednesday after US President Donald Trump said the ceasefire with Iran was over as the two countries traded fresh strikes in West Asia, dealers said. While corporate bond levels were broadly flattish during the day, yields rose sharply towards the last trading hours due to a sell-off following Trump's comments on Iran on the sidelines of the NATO Summit in Ankara, Turkey. Papers maturing in up to three years were the most actively traded.

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was up 14-15 basis points at 7.37-7.40% from 7.23-7.25% Tuesday, while the indicative yield on NABARD's five-year bonds rose 11-20 bps to 7.35-7.45% from 7.24-7.25% Tuesday. 

 

"The market was fine. Then Mr. Trump came and said it's (the ceasefire with Iran) over. After that, levels went up," a dealer at a small finance bank said. 

 

The US attacked Iran overnight after Iran hit vessels transiting the Strait of Hormuz. The Trump administration also revoked a temporary sanctions waiver on Iran to export oil.

 

A rise in prices of Brent crude oil and yields on Indian government bonds also weighed on corporate bonds. Prices of Brent crude oil hit a two-week-high Wednesday following Trump's comments. At 1720 IST, Brent crude futures for September delivery were at $78.59 per barrel, up from the previous close of $74.16 a barrel. The yield on the 10-year benchmark 6.94%, 2036 Indian government bond settled at 6.7636% on Wednesday, up 7 bps from Tuesday.

 

In the secondary market, deals worth INR 141.41 billion were recorded on the National Stock Exchange and BSE combined Wednesday, sharply higher than INR 102.38 billion on Tuesday. Papers issued by Power Finance Corp., Small Industries Development Bank of India, Lucina Land Development, REC, and Aditya Birla Capital were actively traded.

 

Bonds worth INR 121.55 billion were issued Wednesday, nearly four times the amount of INR 25.50 billion Tuesday. PNB Housing Finance's INR 5-billion August 2029 bonds were fully subscribed at a coupon of 7.83%. Godrej Finance raised INR 2.5 billion through two-year bonds. 

 

On Thursday, Poonawalla Fincorp will seek bids for INR 2 billion through the reissue of 8.4308%, April 2036 bonds. The bonds are rated 'AAA' by Crisil Ratings and will be allotted Friday. Darashaw and Co. Pvt. Ltd. is the sole arranger of the issuance. 

 

Non-banking financial companies are not expected to halt their fundraising plans following fresh hostilities between the US and Iran and Trump's latest comments, a dealer at a non-banking financial company said. Market participants will track overnight developments in the US-Iran conflict to take positions on corporate bond yields Thursday.

 

 

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 143 million was traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 143 million of Bihar's 7.68%, 2027 bond was dealt at 7.0465%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Wednesday	Tuesday
Three-year	7.37-7.40%	7.23-7.25%
Five-year	7.35-7.45%	7.24-7.25%
10-year	--	--

 

End

 

US$1 = INR 95.56

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

 

With inputs from Vaishali Tyagi

Edited by Avishek Dutta

 

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