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Informist, Tuesday, Sept. 22, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds ended broadly steady Tuesday even as Brent crude oil prices fell below $98 per barrel, dealers said. Papers maturing in up to three years were traded most actively in the secondary market, with mutual funds and banks seen as the most active participants.

 

The indicative yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.72-7.76%, against 7.70–7.75% Monday, while the indicative yield on NABARD's five-year bonds was 7.75-7.80%, against 7.80% Monday. The yield on the 10-year benchmark Indian government bond settled at 7.0106% Tuesday, down from 7.0497% Monday. 

 

"There was not much movement in the market. It was continuing yesterday's (Monday's) trend. We expected a sharp buying, but that didn't happen," a dealer at a state-owned bank said. "Whatever mandates people have for buying and selling happens in the first half (of trading hours). In the second half, there aren't many trades. Maybe we could see the impact (of fall in crude oil prices on corporate bond yields) tomorrow (Wednesday)." 

 

Brent crude oil prices eased on reports that Iran had offered to reopen the Strait of Hormuz. Iran said it could reopen the oil choke point within seven days if the US eased military pressure and ‌lifts its blockade on Iranian ports, Reuters reported, quoting a senior Iranian official. News reports that Saudi Arabia has restarted operations at its East-West Pipeline also supported the fall in Brent crude oil prices as concerns about disruptions to crude oil exports eased. At 1730 IST, Brent crude oil futures for November delivery traded at $98.25 per barrel.  

In the secondary market, deals worth INR 108.19 billion were recorded on the National Stock Exchange and BSE combined, up from INR 91.44 billion at the same time Monday. Papers issued by NABARD, Power Finance Corp., Navi Finserv, Godrej Finance, Small Industries Development Bank of India, REC, and Canara Bank were actively traded. 

 

Banks are now participating more actively in the corporate bond market as the spread between government securities and corporate bonds is widening, prompting investors to shift back to corporate bonds for better returns compared to government bonds, the dealer at the public sector bank said. "Mark-to-market gains of banks have increased. If yields rise, they won't withdraw (their funds parked in corporate and Indian government bonds). They will keep churning (their portfolios)," a dealer at a private sector bank said. 

 

Bond issuances worth INR 37.08 billion are slated for Wednesday. Embassy Office Parks REIT plans to raise INR 10 billion through the issuance of three-year floating-rate bonds. Axis Finance will seek bids to raise up to INR 5 billion through the issuance of bonds maturing in August 2031. 

 

InCred Financial Services will seek bids for up to INR 2 billion through the issuance of two-year bonds, while Ask Financial Holdings will seek to raise INR 2 billion through the issuance of two bonds with different maturities. MAS Financial Services plans to raise up to INR 1.75 billion through the issuance of two-year bonds. Godrej Housing Finance will seek bids to raise INR 1.5 billion through the issuance of 10-year bonds.  

 

UDAY BONDS

In the secondary market, no Ujwal DISCOM Assurance Yojana bonds was traded Tuesday, according to data on the Reserve Bank of India's Negotiated Dealing System–Order Matching System.

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Tuesday	Monday
Three-year	7.72-7.76%	7.70–7.75%
Five-year	7.75-7.80%	7.80%
10-year	7.0106%	7.0497%

 

End

 

US$1 = INR 95.5900

 

Edited by Avishek Dutta

 

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