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Informist, Thursday, Aug. 13, 2026

 

By Nandini Sinha

 

MUMBAI – Short-term corporate bond yields ended lower Thursday, tracking a fall in yields on Indian government bonds and Brent crude oil prices, dealers said. Mutual funds and insurance companies were active participants in the secondary market, while participation from banks was limited. Papers maturing in up to 2029 were actively traded.

 

While yields on corporate bonds rose 2 basis points during early trade hours, they later fell due to buying in the 2028–2029 segments, a dealer at an insurance company said. "The curve is flat in 2029–2031 segments. Demand was seen for 2028–2029 papers – the more liquid segments."

 

Only players with risk appetite are buying three-to-five-year papers, although some pension funds have shown interest in five-year papers, the dealer said. Thursday, buyers in the secondary market mostly demanded the National Bank for Agriculture and Rural Development and Small Industries Development Bank of India's papers, a dealer at a brokerage firm said.

 

The yield on three-year bonds issued by NABARD was 7.30–7.33%, down from 7.35% Wednesday. The indicative yield on NABARD's five-year bonds was 7.37-7.40% against 7.38% Wednesday. The yield on the 10-year benchmark Indian government bond settled at 6.7506% Thursday, down from 6.7776% Wednesday. At 1732 IST, Brent crude oil futures for October delivery traded at $87.43 per barrel, down from around $89 a barrel at the end of market hours Wednesday.

 

In the secondary market, deals worth INR 97.16 billion were recorded on the National Stock Exchange and BSE combined, down from INR 110.46 billion Wednesday. REC papers worth INR 12.63 billion and SIDBI papers worth INR 7.65 billion were traded. Papers issued by Muthoot Finance, National Housing Bank, Apex Homes, and Kerala Infrastructure Investment Fund Board were actively traded Thursday.

 

Bond issuances worth INR 48.50 billion are lined up for Friday. The National Bank for Financing Infrastructure and Development plans to raise up to INR 30 billion through 15-year bonds maturing on Aug. 19, 2041, dealers said. The issue has a base size of INR 10 billion and a greenshoe option of INR 20 billion. According to market participants, the cut-off is expected to be 7.55–7.65%. Pension funds and the Employees' Provident Fund Organisation are expected to participate in the NaBFID auction.  

 

Among other issuers Friday, Manappuram Finance will seek bids for up to INR 10 billion for the issuance of two bonds with different maturities. Poonawalla Fincorp will seek to raise up to INR 7.5 billion through the issuance of bonds maturing in February 2029.  

 

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds worth INR 21.50 million were traded Thursday, 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 7.0665%

* INR 2.50 million of Punjab's 8.47%, 2029 bond was dealt at 6.8799%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Thursday	Wednesday
Three-year	7.30–7.33%	7.35%
Five-year	7.37-7.40%	7.38%
10-year	--	7.45–7.50%

 

End

 

US$1 = INR 95.44

 

Edited by Avishek Dutta

 

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