The Central government has indicated that it wants to mobilise up to Rs 33,000 cr through auction of three securities maturing in 2028, 2033 and 2052
The government will sell a notified amount of Rs 28,000 crore worth of three securities on Friday
Dealers said Bengal and UP raised amounts via bonds with 15-17 year maturity and cut-off yield above 7.9%; pricing likely to remain under pressure in near term
RBI will likely set a cutoff yield of 7.23% on 130 billion rupees ($1.63 billion) of the new 10-year bond being auctioned on Friday, according to the median estimates in a Reuters poll
This week, spread between weighted average 10-year SDL and 10-year GOI bond yield was up slightly to 37 bps from 36 bps earlier
Signals central bank's comfort with yields
Adopts uniform price auction for bonds up to 14 years till further notice
The government decided to cancel the auction on review of its cash balances, RBI said in a statement after close of markets Monday
The central bank is offering commissions as high as 50 paise per Rs 100 face value for a bond maturing in 2050, compared with just 1.24 paise on April 30, 2020
Retail investors - those investing up to Rs 200,000 - did not subscribe to all the shares on offer despite arbitrage gains on the table
They can specify the amount they want to buy, without quoting yield or price; allotment will be on weighted average price/yield of institutional buyers
RBI, on behalf of the government, sold five bonds, including one fixed rate bond maturing in 2031, against which it raised Rs 40 bn
Economic Affairs Secretary Subhash Chandra Garg will review the bond market's recent volatility later on Friday