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Informist, Friday, Jul. 3, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on three- and five-year corporate bonds ended broadly steady Friday owing to the lack of any significant cues and traders avoiding taking positions ahead of the weekend, dealers said. Banks and mutual funds were the major participants in the short-term segment while pension funds were seen active in the long-term segment.

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was in the range of 7.15-7.20%, compared with 7.15% Thursday. "NABARD cut-off was 7.16%... so there was ask of up to 20 (7.20%)," a dealer at a state-owned bank said. The indicative yields on NABARD's five-year bonds were 7.20-7.21%, up marginally from 7.19-7.20% Thursday.

 

The primary market saw a sharp rise in activity with bonds worth INR 178.80 billion issued Friday, up from INR 26.45 billion Thursday. NABARD raised INR 80 billion at a coupon of 7.16% through the issuance of bonds maturing on Dec. 14, 2029. India Infrastructure Finance Co. Ltd. raised INR 18.48 billion at 7.25% through the issuance of bonds maturing in June 2031, dealers said.

 

NABARD received bids aggregating to INR 143.10 billion in the range of 6.90-7.29%, according to the bid book accessed by Informist. Banks and mutual funds were the most active participants in the NABARD bond auction, dealers said.

 

Corporate bond yields have already fallen a fair bit and only a major positive development can cause yields to fall further, a dealer at another state-owned bank said about corporate bond yields ending steady Friday.

 

In the secondary market, deals aggregating to INR 135.74 billion were recorded on the National Stock Exchange and BSE combined, sharply down from INR 198.08 billion Thursday. Paper issued by NABARD, Muthoot Microfin, South City Projects (Kolkata), and Kerala Infrastructure Investment Fund Board were traded actively.

 

Monday, issuances worth nearly INR 74 billion are lined up. Tata Capital will seek to raise up to INR 37.5 billion through the issuance of two bonds, including a reissue. L&T Finance is seeking bids for INR 10 billion through the issuance of two bonds, including a reissue. Bajaj Housing Finance will seek bids for up to INR 15 billion through the issuance of bonds maturing in September 2029 while Jio Credit plans to raise up to INR 10 billion through the issuance of three-year bonds.

 

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds worth INR 3 million were traded Friday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 2 million of Telangana's 8.04%, 2031 bond was dealt at 6.8778%

* INR 1 million of Punjab's 8.47%, 2029 bond was dealt at 6.8495%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Friday	Thursday
Three-year	7.15-7.20%	7.15%
Five-year	7.20-7.21%	7.19-7.20%
10-year	--	--

 

End

 

Edited by Rajeev Pai

 

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