India Corporate Bonds
Short-term bond yields a tad up tracking gilt yields
This story was originally published at 19:17 IST on 28 July 2026
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By Nandini Sinha
MUMBAI – Yields on short-term corporate bonds ended a tad higher Tuesday, tracking the yields on Indian government bonds, dealers said. Bonds maturing in up to five years were actively traded, with mutual funds and banks seen as active participants.
The yield on the 10-year benchmark 6.94%, 2036, Indian government bond settled at 6.7774% Tuesday, up from 6.7739% Monday. The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.37–7.39%, up two basis points from 7.35–7.37% Monday. The indicative yield on NABARD's five-year bond was 7.33–7.36% against 7.33–7.35% Monday.
In the secondary market, overall deals worth INR 91.33 billion were recorded on the National Stock Exchange and BSE combined, down from INR 98.40 billion Monday. Papers issued by Indian Railway Finance Corp., Bharti Telecom, Porteast Investment, NABARD, Lloyds Metals and Energy, and HDFC Bank were actively traded.
Traders are refraining from taking aggressive positions as uncertainty looms over the US-Iran war, market participants said. Market participants are also tracking the ongoing Parliament monsoon Session for any major developments, such as the Cabinet reshuffle, and are thus trading cautiously, a dealer at a private sector bank said.
The primary market saw limited activity Tuesday, with issuances worth just INR 3.31 billion. In a sharp contrast, bonds worth INR 103.35 billion are slated to be issued Wednesday.
State Bank of India plans to raise up to INR 50 billion through the issuance of perpetual, subordinated Basel-III-compliant Additional Tier 1 bonds. Muthoot Finance will seek bids for up to INR 42 billion through the issuance of floating-rate bonds maturing in September 2029.
Trust Investment Advisors has sought bids for up to INR 3 billion through the issuance of two bonds with different maturities. Keertana Finserv will tap the market to raise up to INR 2 billion through the reissue of the 12.00%, September 2027 bonds.
Aavas Financiers has sought bids to raise INR 2 billion through the issuance of three-year bonds, while EarlySalary Services will seek bids for up to INR 1.8 billion through the issuance of bonds maturing in October 2028.
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 |
7.37–7.39% | 7.35–7.37% |
|
Five-year |
7.33–7.36% | 7.33–7.35% |
|
10-year |
-- | 7.40-7.50% |
End
Edited by Deepshikha Bhardwaj
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