More Stories

Informist, Wednesday, Aug. 12, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds Wednesday ended broadly unchanged from the previous session after moving in a thin band because of comfortable liquidity, dealers said. Mutual funds were seen selling very short-term bonds due to redemption pressures and banks were seen buying. While bids came in 2–3 basis points higher than Tuesday's levels, no deals happened at those levels, a dealer at a public-sector bank said. "Overall, it (yields on corporate bonds) was range-bound." 

 

"Banks have liquidity from FCNR(B) (deposits), mutual funds are having extradordinary surplus. TREPS (tri-party repo) was at 4.80?ew days ago (Monday's close). If TREPS is at 4.70-4.80%, then that shows high liquidity," a dealer at a private-sector bank said. The net liquidity absorbed by the Reserve Bank of India--an indication of the liquidity surplus in the banking system--rose to INR 3.35 trillion Tuesday from INR 3.19 trillion Monday.

In the secondary market, deals worth INR 110.46 billion were recorded on the National Stock Exchange and BSE combined Wednesday, sharply up from INR 87.98 billion Tuesday. Paper issued by LIC Housing Finance, Tata Capital Housing Finance, National Bank for Agriculture and Rural Development, Small Industries Development Bank of India, Jio Credit, and Vena Energy Power Resources were traded actively.

 

India's CPI inflation for July came in at 4.45% against 4.38% in June. "Everybody knew about CPI data (expectations). The market had already priced in PMI (Purchasing Managers' Index) data that came earlier this month. The CPI data was just a suffix of that report," the dealer at the private-sector bank said while explaining the increase in the secondary market volume Wednesday.

 

"Each and every country has diversified their energy sources," the dealer said. "A bigger trigger point will be GDP." The Reserve Bank of India has revised its GDP growth forecast for the financial year 2026-27 (Apr-Mar) to 6.7% from 6.6?rlier.

 

The yield on three-year bonds issued by NABARD was 7.35%, up from 7.33–7.34% Tuesday. The indicative yield on NABARD's five-year bonds was unchanged at 7.38%. The indicative yield on NABARD's 10-year bond was 7.45–7.50% against 7.48–7.50% Tuesday. The yield on the 10-year benchmark Indian government bond settled at 6.7776% Wednesday, from 6.7791% Tuesday.

 

Wednesday, bonds worth INR 32.55 were slated to be issued. Axis Finance raised INR 8.35 billion through the issuance of bonds maturing on Jul. 16, 2029, at 7.90%. The company had planned to raise up to INR 11 billion through the issuance. SMFG India Credit Co.'s INR 2-billion three-year floating-rate bonds were fully subscribed. L&T Finance raised INR 2 billion through the reissue of the 8.20%, July 2036 bonds against plans to raise up to INR 3.8 billion. 

 

Thursday, two market participants are expected to tap the market to raise up to INR 7 billion, dealers said. Kotak Mahindra Prime will seek bids for INR 4 billion through the reissue of its 7.88%, October 2029 bonds. Sundaram Home Finance plans to raise INR 3 billion through the issuance of five-year bonds at 7.81%.

 

Traders expect yields on corporate bonds to be largely range-bound Thursday, although they continue to track crude oil prices. Market participants will also watch out for US CPI data later in the day. "(India) CPI data didn't impact G-secs (Indian government securities)," the dealer at the public-sector bank said. The US CPI data could lead to some rise in yields if it is higher than expected, the dealer said.

 

UDAY BONDS

In the secondary market, seven Ujwal DISCOM Assurance Yojana bonds worth INR 92.30 million were traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 50.00 million of Uttar Pradesh's 8.58%, 2031 bond was dealt at 7.1343%

* INR 19.00 million of Punjab's 8.61%, 2030 bond was dealt at 7.0183%

* INR 12.00 million of Uttar Pradesh's 8.77%, 2031 bond was dealt at 7.0972%

* INR 3.50 million of Punjab's 8.47%, 2029 bond was dealt at 6.8913%

* INR 3.00 million of Uttar Pradesh's 8.49%, 2028 bond was dealt at 6.7519%

* INR 2.50 million of Uttar Pradesh's 8.35%, 2029 bond was dealt at 6.9046%

* INR 2.30 million of Punjab's 8.65%, 2028 bond was dealt at 6.8800%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Wednesday	Tuesday
Three-year	7.35%	7.33–7.34%
Five-year	7.38%	7.38%
10-year	7.45–7.50%	7.48–7.50%

 

End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.