Informist, Monday, Nov 22, 2021
By Sanjana Raina
NEW DELHI – Yields on corporate bonds ended largely flat in the secondary market today amid subdued trade volume as most investors kept to the sidelines and waited for primary issuances, dealers said. However, yields on longer-maturity bonds fell slightly.
Today, in the secondary market, mutual funds and some banks were said to have been the most active.
“There are no fresh triggers right now for anyone to do anything. Largely, people are just holding their positions,” a fund manager said.
Papers issued by Housing Development Finance Corp, National Bank for Agriculture and Rural Development, REC, Power Finance Corp, Tata Capital Financial Services, Mahanagar Telephone Nigam Ltd, State Bank of India, and Star Health And Allied Insurance Co were traded the most across maturities today.
Money markets were shut on Friday on account of Guru Nanak Jayanti.
After the trading holiday, activity in the secondary market remained low today due to the thin attendance across bank treasuries and institutional dealing rooms.
Even though overall volumes were muted, some demand was seen in bonds of up to 10-year maturity from insurance companies and mutual funds, dealers said.
In the primary market today, Indian Railway Finance Corp Ltd set a coupon of 6.95% on bonds maturing in 15 years, and accepted bids aggregating to 50 bln rupees.
On Wednesday, Bank of Baroda has invited bids for Basel-III-compliant tier-I bonds, and plans to raise up to 20 bln rupees.
Today, deals aggregating 25.00 bln rupees were reported on the NSE, as against 36.33 bln rupees on Thursday. BSE recorded deals worth 17.95 bln rupees compared with 19.30 bln rupees in the previous session.
UDAY BONDS
In the secondary market, Ujjwal DISCOM Assurance Yojana bonds aggregating 30.00 mln were traded at a weighted average yield of 6.75-7.09%, data from the RBI’s Negotiated Dealing System – Order Matching System showed.
*2.9 mln rupees of Chhattisgarh’s 2026 bonds were traded at 7.00%
*0.5 mln rupees of Haryana’s 2026 bonds were traded at 7.09%
*26.6 mln rupees of Rajasthan’s 2026 bonds were traded at 6.75%
BENCHMARK LEVELS FOR CORPORATE BONDS:
End
Edited by Aditya Sakorkar
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