Informist, Wednesday, Feb 23, 2022
By Subhana Shaikh
MUMBAI – Corporate bond yields ended steady in the secondary market today across maturities as most investors flocked to the primary market where big-ticket National Bank for Agriculture and Rural Development sought bids for its bonds maturing in February 2025, dealers said.
In the primary market today, NABARD raised up to 50 bln rupees through bonds maturing on Feb 26, 2025 at a coupon of 5.63%. The issue was fully subscribed.
Housing Development and Finance Corp plans to raise up to 30 bln rupees through bonds maturing on Feb 25, 2025, while Can Fin Homes Ltd aims to raise up to 5 bln rupees through bonds maturing in three years. Biddings for both the issuances are scheduled for Thursday.
According to merchant bankers, primary supply has started flowing in the market slowly and more issuances from state-owned entities are expected to hit this week.
In the secondary market of corporate bonds today, some mutual fund houses, a few corporates and pension funds were said to have been active. According to dealers, most investors kept to the sidelines due to lack of major domestic cues.
“There is nothing happening in the corporate bond market right now, people are not taking any positions because there is no direction to look at and volumes are also subdued,” a fund manager with a mid-sized fund house said.
Papers issued by Bajaj Finance, Power Finance Corp, Tata Capital Financial Services, Housing Development Finance Corp, National Bank for Agriculture and Rural Development, State Bank of India, Indian Railway Finance Corp and Indian Oil Corp were traded the most across tenures.
Market participants awaited further cues on evolving geopolitical tensions between Russia and Ukraine and refrained from placing big bets ahead of the weekly gilt auction on Friday, keeping volumes muted, dealers said.
This is the first gilt auction in three weeks, after the Centre cancelled the previous two auctions citing it healthy cash balance. Till 1500 IST, the turnover in the secondary market on the National Stock Exchange was at 21.71 bln rupees.
BENCHMARK LEVELS FOR CORPORATE BONDS:
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Source: Cogencis
