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Informist, Friday, Jun. 19, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on three- and five-year corporate bonds ended a tad higher Friday tracking the rise in the yields on Indian government bonds, dealers said. Papers maturing in up to three years were the most actively traded, with banks and mutual funds seen selling corporate bonds. Foreign portfolio investors remained largely absent from the corporate bond market.

 

"There were minor variations (movement in corporate bond yields), but largely they were steady. Can't say there was anything impactful," a dealer at a state-owned bank said. Mutual funds faced redemption pressure ahead of outflows for payment of the goods and services tax, a dealer at another public sector bank said.

 

The yields on three-year bonds issued by the National Bank for Agriculture and Rural Development were 7.32-7.40%, against 7.32-7.33% Thursday. The indicative yields on NABARD's five-year bonds were 7.35-7.45% against 7.35-7.40% Thursday, while the indicative yields on NABARD's 10-year bonds were unchanged at 7.50-7.55%.

 

The yield on the 10-year benchmark 6.94, 2036 Indian government bond settled at 6.85% Friday, up from Thursday's close of 6.84%. Yields on Indian government bonds rose due to the rise in Brent crude oil prices to over $80 per barrel intraday. Crude oil prices rose after the US-Iran talks set to take place in Switzerland Friday to implement a peace deal were postponed. At 1709 IST, Brent crude oil futures for August delivery traded at $79.92 per barrel.

 

In the secondary market, deals worth nearly INR 91 billion were recorded on the National Stock Exchange and BSE combined at 1500 IST, down from INR 96.92 billion at the same time Thursday. Papers issued by REC Ltd., NABARD, Bajaj Finance Ltd., Bajaj Housing Finance Ltd., and Hyderabad Metropolitan Development Authority were traded actively.

 

Traders will track the developments in the US-Iran war for an outlook on corporate bond yields Monday. Several companies will tap the corporate bond market to raise funds Monday. Indian Renewable Energy Development Agency Ltd. plans to raise up to INR 15 billion through the issuance of bonds maturing on Jun. 30, 2029. "There should be good participation," the dealer quoted in the first instance said about the IREDA bond auction Monday. The state-run non-banking financial company comes up with fewer issuances in a year, the dealer said.

 

India Infradebt Ltd. will seek to raise up to INR 15 billion through the issuance of bonds maturing in December 2031. Godrej Industries Ltd. will seek bids for INR 10 billion through separately transferable redeemable principal part (STRPP) bonds maturing in December 2031. Embassy Office Parks REIT plans to raise INR 7 billion through the issuance of three-year bonds maturing on Jun. 22, 2029. 

 

 

A total of deals aggregating INR 164.35 billion were recorded on the National Stock Exchange and BSE combined Friday, sharply down from INR 200.73 billion Thursday. 

 

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 1.5 million was traded Friday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 1.5 million of Tamil Nadu's 8.04%, 2029 bond was dealt at 6.9896%

 

BENCHMARK LEVELS FOR CORPORATE BONDS: 

 

Tenure	Friday	Thursday
Three-year	7.32-7.40%	7.32-7.33%
Five-year	7.35-7.45%	7.35-7.40%
10-year	7.50-7.55%	7.50-7.55%

 

End

 

US$1 = INR 94.32

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

 

With inputs from J. Navya Sruthi

Edited by Akul Nishant Akhoury

 

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