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Informist, Thursday, Sept. 10, 2026

 

By Nandini Sinha

MUMBAI – Yields on corporate bonds ended higher Thursday, tracking yields on Indian government bonds, dealers said. Crude oil prices remained above the crucial $100-per-barrel mark, which weighed on market sentiment. Secondary market volume remained low compared to Wednesday due to cautious trading.

 

Mutual funds, insurance companies and banks were the most active participants, with papers in the two-year to five-year segment being actively traded. A large housing finance company was seen switching papers, dealers said. 

 

"There was news of RBI's sell-buy swaps, then crude oil (prices) and adverse news related to the (US-Iran) war also impacted the yields," a dealer at a state-owned bank said. "Earlier, we were seeing volume in the shorter-tenor papers, now it's not there much." 

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.65%, up from 7.60–7.62% Wednesday, while the indicative yield on NABARD's five-year bonds rose to 7.70-7.75% from 7.68-7.75% Wednesday. The indicative yield on NABARD's 10-year bonds was 7.75–7.80%, up from 7.70-7.71% Wednesday. 

 

The yield on the 10-year benchmark Indian government bond settled at 6.98% Thursday, up from 6.96% Wednesday. At 1739 IST, Brent crude oil futures for November delivery traded at $103.21 per barrel.

 

In the secondary market, deals worth INR 90.92 billion were recorded on the National Stock Exchange and BSE combined, sharply lower than INR 122.20 billion Wednesday. Papers issued by Apex Homes, Bajaj Finance, Bajaj Housing Finance, Indian Railway Finance Corp., and L&T Finance were traded actively. 

 

On Friday, REC will tap the market to raise up to INR 70 billion through the issuance of two bonds with different maturities, dealers said. The power sector financier plans to raise up to INR 40 billion through a bond maturing on Sept. 30, 2036. The issue has a base size of INR 8 billion and a greenshoe option of INR 32 billion. REC also plans to raise up to INR 30 billion through a bond maturing on Sept. 30, 2031. This issuance has a base size of INR 5 billion and a greenshoe option of INR 25 billion. 

 

Other issuers on Friday include Hero Fincorp Ltd., which plans to raise up to INR 5 billion through two-year floating rate bonds maturing on Sept. 15, 2028. Oxyzo Financial Services Pvt. Ltd. will seek bids for INR 2 billion by issuing two bonds of different maturities. Nomura Capital (India) Pvt. Ltd. plans to raise INR 1 billion through bonds maturing in October 2027. 

 

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds worth INR 7.50 million were traded Thursday, according to data on the Reserve Bank of India's Negotiated Dealing System – Order Matching System.

* INR 4.50 million of Uttar Pradesh's 8.77%, 2031 bond was dealt at 7.1770%
* INR 3.00 million of Uttar Pradesh's 8.49%, 2028 bond was dealt at 6.7801%
 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Thursday	Wednesday
Three-year	7.65%	7.60-7.62%
Five-year	7.70-7.75%	7.68-7.75%
10-year	7.75-7.80%	7.70-7.71%

 

End

 

US$1 = INR 95.44

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

 

Edited by Avishek Dutta

 

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