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Informist, Monday, Jul. 20, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds ended higher Monday, tracking an intraday rise in yields on Indian government bonds as well as the price of Brent crude oil, which touched an intraday high of $91.42 per barrel, dealers said. Bonds maturing in up to five years were mostly traded. Some mutual funds were seen buying as well as selling, while pension funds and banks were active buyers of corporate bonds. 

 

"It (corporate bond yields) opened higher following G-secs (government securities). Post the news of mediation, no major deals happened," a dealer at a large public-sector bank said. After the recent military escalation between the US and Iran, Tehran said it has received proposals from mediators, leading to some improvement in market sentiment.

The yield on the 10-year benchmark Indian government bond settled at 6.7770% Monday, down from 6.7799 Friday. The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.45%, against 7.38-7.41% Friday, while the indicative yield on NABARD's five-year bonds was 7.40-7.45% from 7.39-7.41% Friday. The indicative yield on NABARD's 10-year bonds was 7.45-7.50% from 7.45-7.47% Friday.

 

In the secondary market, deals worth INR 89.18 billion were recorded on the National Stock Exchange and BSE combined, up from INR 76.29 billion Friday. Paper issued by LIC Housing Finance, Small Industries Development Bank of India, Indian Railway Finance Corp., Muthoot Finance, and L&T Finance were traded actively.

 

While volumes at 1500 IST were down from Friday, they rose towards the close of trading hours on the back of an improvement in market sentiment after Iran's comment on mediation.
 

While there is talk of mediation between the US and Iran, crude oil prices still rose, indicating mixed signals, the dealer said. Most mutual funds had their cash parked for the initial public offering of SBI Funds Management, a dealer at a private-sector bank said about the low secondary market volumes.

 

Bonds worth INR 3.5 billion were issued Monday. Tuesday, ECap Equities will tap the market to raise INR 2.5 billion through the reissue of 10.30%, April 2029 bonds, dealers said.

 

Borrowers may tap the corporate bond market through five-year bonds after several fundraises through three-year bonds, the dealer at the state-owned bank said. "If this (US-Iran war) cools down, these issuers might come for five-year (bond issuances)."

 

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	7.45%	7.38-7.41%
Five-year	7.40-7.45%	7.39-7.41%
10-year	7.45.7.50%	7.45.7.47%

 

End

 

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

 

Edited by Rajeev Pai

 

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