More Stories

Informist, Monday, Aug. 24, 2026

 

By Nandini Sinha

 

MUMBAI – Yield on three-year corporate bonds ended broadly unchanged Monday, while those on five-year papers ended higher, tracking the yields on Indian government bonds and elevated crude oil prices, dealers said. Fears of an escalation in the US-Iran war also weighed on corporate bond yields. Market participants traded cautiously as they awaited further clarity over the US' new sanctions on Iran.

 

"There is no clarity on the war. US said it is going to announce sanctions. They (market participants) are waiting for more clarity on that," a dealer at a public sector bank said. "They (US) have said it will be very tough sanctions. If that happens, then Iran will retaliate by blocking (Strait of) Hormuz."

 

US Treasury Secretary Scott Bessent is expected to announce fresh sanctions on Iran on Monday, calling it "the toughest sanctions in history." Iran. Tehran has vowed retaliation if countries join the US in imposing sanctions. 

 

"If the countries surrounding Iran join the Americans in their economic war, not a drop of oil will leave the Persian Gulf and the Strait of Hormuz, and we will also target other oil export routes from the Persian Gulf," news reports quoted Iran's security chief Mohsen Rezaee as saying.

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.62–7.63%, against 7.62% Friday, while the indicative yield on NABARD's five-year bonds was 7.60-7.64%, up from 7.58–7.60% Friday.

 

The yield on the 10-year benchmark 6.94%, 2036 Indian government bond ended at 6.87%, up from 6.85% Friday. At 1732 IST, Brent crude oil futures for October delivery were traded at $93.07 per barrel, down from the day's high of $93.81 per barrel.

 

In the secondary market, deals worth INR 107.51 billion were recorded on the National Stock Exchange and BSE combined, down from INR 108.01 billion Friday. Papers issued by Bajaj Housing Finance, IIFL Finance, Poonawalla Fincorp, Andhra Pradesh State Beverages Corp., and Larsen and Toubro were traded actively. Papers in the 2028 and 2029 segments were most actively traded, with mutual funds and banks seen as active participants. 

 

In the primary market, Power Finance Corp. Ltd. Monday raised INR 25 billion through the issuance of 15-year bonds at a coupon of 7.55%. However, the state-owned company withdrew the issuance of three-year bond as investors demanded a higher coupon, dealers said. 

 

For the three-year bond, the base issue of INR 5 billion was priced at a coupon of around 7.44%. The entire issue of INR 25 billion, including the greenshoe option of INR 20 billion, was priced at 7.52%. Market participants had expected the cut-off on the three-year bond to be around 7.45%.

 

"When you're getting almost the same levels (in the three-year and 15-year papers), then they will go for the longer one," the dealer at the state-owned bank said. Pension funds and insurance companies are expected to have bought PFC's 15-year bonds. 

 

On Tuesday, bond issuances are seen rising to INR 66.75 billion from INR 57.75 billion Monday. Bajaj Finance will tap the market to raise up to INR 60 billion through the issuance of 10-year bonds. Vivriti Capital will seek bids for up to INR 2 billion through the reissue of two bonds with different maturities, while Finnable Credit plans to raise up to INR 1 billion through the reissue of the 11.00%, January 2029 bond. 

 

ITI Gold Loans plans to raise up to INR 1 billion through the issuance of two-year bonds, while Satin Finserv plans to raise the same amount through the issuance of bonds maturing in November 2028. Progfin Pvt. Ltd. will seek bids for INR 1 billion through the issuance of bonds maturing in March 2028. 

 

UDAY BONDS

In the secondary market, no Ujwal DISCOM Assurance Yojana bonds were traded Monday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Monday	Friday
Three-year	7.62–7.63%	7.62%
Five-year	7.60-7.64%	7.58–7.60%
10-year	--	7.63–7.65%

 

End

 

US$1 = INR 95.7450

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

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.