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Informist, Tuesday, Jul. 21, 2026

 

By Vaishali Tyagi

 

NEW DELHI – Corporate bond yields in the secondary market ended broadly unchanged on Tuesday after edging slightly higher toward the close. Trading remained in a narrow range amid subdued activity, with no major domestic or global cues. Market participants said activity was largely driven by banks and mutual funds' basic portfolio requirements, they said.

 

Yields were largely steady through the day with 1-2 basis points movement on either side. However, toward the closing hours, yields rose a bit due to the uptick in crude oil prices, dealers said. "Market was calmer in the morning...but we saw yields went up a bit when crude prices rose and some selling emerged later," a dealer at a brokerage firm said.

 

Dealers expect trading activity to remain subdued in the absence of major domestic or global triggers, with participants likely to take positions based on key events. Until then, corporate bond yields are seen staying in tight range. "Movement will be driven by significant data, but right now it is mostly demand-supply and minor cues like crude oil prices that are pushing and pulling the market. Participants are not taking aggressive bets as there is no significant buying or selling pressure," a dealer at another brokerge firm said. 

 

Banks and corporates were engaged in need-based trades and were active on both the buying and selling side. Mutual funds were seen buying in the morning but turned sellers toward the close. "Any noticeable change usually comes when additional players like corporates, insurance companies and banks take aggressive positions. But right now, due to the absence of major cues, they are limiting themselves to need-based trades," a dealer said.

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.42-7.44%, against 7.45% Monday, while the indicative yield on NABARD's five-year bonds was 7.40-7.43% from 7.40-7.45% Monday. The indicative yield on NABARD's 10-year bonds was 7.44-7.49% from 7.45-7.50% Friday.

 

In the secondary market, deals worth INR 105.11 billion were recorded on the National Stock Exchange and BSE combined, sharply up from INR 89.18 billion Monday. Paper issued by Canara Bank, SBI Cards And Payment Services, Hyderabad Metropolitan Development Authority, Kerala Infrastructure Investment Fund Board, HDFC Bank, Andhra Pradesh State Beverages Corp. and National Highways Authority of India were traded the most. 

 

Tuesday, primary market activity remained negligible, barring one issuance of Ecap Equities which planned to raise INR 2.50 billion, compared with INR 3.50 billion worth of bonds issued Monday. The deal, however, was not confirmed till the time of reporting.

On Wednesday, issuances worth over INR 39 billion are lined up, led by major non-banking financial companies. Bajaj Finance plans to raise up to INR 20 billion through bonds maturing on Jun. 12, 2029. HDB Financial Services has invited bids to raise up to INR 10 billion via the reissue of its 8.2301% July 2029 bonds. Other issuers included Asirvad Micro Finance, SMFG India Home Finance Co., and Indostar Capital Finance. 

 

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds worth INR 11 million were traded on Tuesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 9.00 million of Tamil Nadu's 7.74%, 2031 bond was dealt at 7.4757%

* INR 2.00 million of Telangana's 8.04%, 2031 bond was dealt at 7.0066%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Tuesday	Monday
Three-year	7.42-7.44%	7.45%
Five-year	7.40-7.43%	7.40-7.45%
10-year	7.44-7.49%	7.45.7.50%

 

End

 

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

 

Edited by Akul Nishant Akhoury

 

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