The government will sell a notified amount of Rs 28,000 crore worth of three securities on Friday
Apart from long-term bonds, the market participants also requested the central bank to reduce issuance of floating-rate bonds and cap sizes of weekly primary auctions to Rs 30,000 crore
Signals central bank's comfort with yields
The government decided to cancel the auction on review of its cash balances, RBI said in a statement after close of markets Monday
In a notification on its website, the central bank said it would buy Rs 20,000 crore of bonds from the secondary market, and sell Rs 15,000 crore of bonds
Central bank will sell Rs 11,000 cr each of 10-yr and 5-yr bonds on Thursday; Govt has kept Rs 2,000 cr green shoe in each; on Friday, RBI will auction Rs 26,000 cr of bonds as per prior plan
After the auction the 10-year benchmark bond yield eased by one basis point to 7.73 per cent as the long-end papers were fully sold