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Informist, Monday, Aug. 10, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds ended a tad lower Monday, tracking yields on Indian government bonds, dealers said. Volume in the secondary market was down from Friday's levels at 1500 IST as market participants traded cautiously, seeking more cues to take positions, they said. 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.30–7.35%, against 7.33–7.35% Friday, while the indicative yield on NABARD's five-year bonds was 7.35-7.40%, compared to 7.38–7.40% Friday. The indicative yield on NABARD's 10-year bond was 7.45%, down from 7.45–7.47% Friday. The yield on the 10-year benchmark Indian government bond settled at 6.7643% Monday, slightly lower than 6.7651% Friday. 

 

In the secondary market, overall deals worth INR 71.46 billion were recorded on the National Stock Exchange and BSE combined, down from INR 74.58 billion Friday. Papers issued by Bajaj Finance, Telangana State Industrial Infrastructure Corp. Ltd., IIFL Finance, Bajaj Housing Finance, and Cholamandalam Investment and Finance Company Ltd. were actively traded. Mutual funds and insurance companies were seen as the active participants in the secondary market Monday. 

 

"People are not sure about which direction to take," a dealer at a state-owned bank said. "War is still a big factor. It's possible something (a new development) happens (in the US-Iran war) and crude could be up by $5 tomorrow." Investors are also preferring state government bonds as these are currently offering better yields than corporate bonds, the dealer said. 

While traders are preferring long-term Indian government bonds after the Reserve Bank of India's Monetary Policy Committee left the repo rate unchanged, no such demand for long-term corporate bonds has been seen. "There is no demand (for long-term corporate bonds) as such. Maximum trades are happening in the two-three-year segments," the dealer at the public sector bank said. 

 

Inflows through foreign currency non-resident (bank) deposits have not translated into strong demand for corporate bonds, the dealer said. "Only some FIIs (foreign institutional investors) are buying, mostly in the two to two-and-a-half-year segment," the dealer said.

 

 

Bond issuances worth INR 16 billion are slated for Tuesday. Tata Capital Housing Finance plans to raise up to INR 7.5 billion through the reissue of 7.86%, September 2029 bonds. SK Finance will seek bids for up to INR 5 billion through the issuance of three-year bonds, while IKF Finance plans to raise up to INR 2 billion through the issuance of bonds maturing in September 2028.
 

UDAY BONDS

In the secondary market, three Ujwal DISCOM Assurance Yojana bonds worth INR 153 million were traded Monday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 100.0 million of Tamil Nadu's 8.04%, 2029 bond was dealt at 6.7927%

* INR 50.00 million of Tamil Nadu's 7.72%, 2029 bond was dealt at 6.7935%

* INR 3.00 million of Telangana's 8.04%, 2031 bond was dealt at 7.4609%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Monday	Friday
Three-year	7.30–7.35%	7.33-7.35%
Five-year	7.35–7.40%	7.38–7.40%
10-year	7.45%	7.45-7.47%

 

End

 

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

 

Edited by Avishek Dutta

 

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