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Informist, Tuesday, Aug. 11, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds moved in a narrow band Tuesday as market participants awaited fresh cues before placing large bets, dealers said. Bonds with maturities between 2027 and 2029 were traded actively. There was little trading in long-term corporate bonds. Mutual funds, banks, and insurance companies were the active participants. Some buying pressure was seen from mutual funds, a dealer at a brokerage firm said.

While most dealers said yields moved marginally lower, one said they were up slightly owing to a rise in yields on Indian government bonds and the rise in crude oil prices. The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.33–7.34% against 7.30–7.35% Monday, while the indicative yield on NABARD's five-year bonds was 7.38% from 7.35–7.40% Monday. The indicative yield on NABARD's 10-year bond was up at 7.48–7.50% from 7.45% Monday. The yield on the 10-year benchmark Indian government bond settled at 6.7791% Tuesday, marginally up from 6.7643% Monday. At 1705 IST, Brent crude oil for October delivery was traded at $87.74 per barrel, after reaching a high of $90 per barrel intraday.

 

In the secondary market, deals worth INR 87.98 billion were recorded on the National Stock Exchange and BSE combined, up from INR 71.46 billion Monday. Paper issued by NABARD, REC, Power Finance Corp., Housing and Urban Development Corp., Tata Capital, IIFL Finance, and Bajaj Housing Finance were actively traded.

 

"Mutual funds are only buying. They are the market makers. They are ready to sell at any level if they want to," a dealer at a private-sector bank said about the low volumes in the secondary market. "Banks are not trading much in corporate bonds. They are buying G-secs (Indian government securities), they have to maintain SLR (statutory liquidity reserve). Corporate bonds' volatility is high."

 

Bonds worth INR 16 billion were slated to tap the market Tuesday. Tata Capital Housing Finance raised INR 7.5 billion through the reissue of 7.86%, September 2029 bonds, dealers said. Wednesday, Aditya Birla Capital plans to raise up to INR 15 billion through two bonds, including a reissue, dealers said. Axis Finance has sought bids for up to INR 11 billion through the issuance of bonds maturing in July 2029. L&T Finance will seek to raise up to INR 3.8 billion through the reissue of 8.20%, July 2036 bonds while SMFG India Credit Co. will tap the market to raise INR 2 billion through the issuance of three-year floating-rate bonds.

 

While volumes in the secondary market at 1500 IST were up from Monday, traders said overall trading activity was subdued. India's CPI inflation data for July, due Wednesday, is expected to provide cues to the market, they said. India's headline inflation is seen at 4.4% in July, according to the median of an Informist Poll of 12 economists.

 

UDAY BONDS

In the secondary market, eight Ujwal DISCOM Assurance Yojana bonds worth INR 65.76 million were traded Tuesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 19.00 million of Punjab's 8.61%, 2030 bond was dealt at 7.0223%

* INR 16.50 million of Uttar Pradesh's 8.77%, 2031 bond was dealt at 7.1996%

* INR 13.56 million of Uttar Pradesh's 8.63%, 2029 bond was dealt at 7.2976%

* INR 6.70 million of Telangana's 8.08%, 2029 bond was dealt at 7.2953%

* INR 3.00 million of Uttar Pradesh's 8.49%, 2028 bond was dealt at 6.7603%

* INR 2.50 million of Punjab's 8.47%, 2029 bond was dealt at 6.9095%

* INR 2.50 million of Uttar Pradesh's 8.35%, 2029 bond was dealt at 6.9098%

* INR 2.00 million of Uttar Pradesh's 8.75%, 2030 bond was dealt at 6.8531%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Tuesday	Monday
Three-year	7.33–7.34%	7.30–7.35%
Five-year	7.38%	7.35–7.40%
10-year	7.48–7.50%	7.45%

 

End

 

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

 

Edited by Rajeev Pai

 

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