Indian bond prices slip as US yields rise; lower state supply offers support

Bond prices in the Indian market have seen some decline, tracking the rise in the 10-year US Treasury yield. Market pressure has eased slightly due to the lower-than-expected supply of state government bonds. Today’s state bond issuance stands at about ₹130 billion, compared with the earlier estimate of ₹386 billion.

Kerala Infrastructure Investment Fund is set to raise ₹15 billion through a 10-year bond issue today.

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Corporate bond activity remained steady last week, with several companies raising funds through bond and non-convertible debenture (NCD) issuances. Torrent Pharma raised ₹110 billion through bonds. Sammaan Capital raised ₹1.15 billion via NCDs. Muthoot Finance raised ₹3 billion, while Bajaj Housing Finance raised ₹5.08 billion and PNB Housing Finance raised ₹3 billion through NCDs.

This week, more issuers are expected to enter the market. Power Finance Corp has an issuance of ₹50 billion open until January 30.

Axis Bank

has also raised ₹1.5 billion through perpetual bonds.

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