Now Reading: RBI Auction Sells Rs 31,969 Crore in Government Securities
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RBI Auction Sells Rs 31,969 Crore in Government Securities
The government raised nearly Rs 31,969 crore through the auction of two securities, according to results released by the Reserve Bank of India. It sold Rs 20,988.272 crore of the 6.36% Government…
The Story in Brief
The government raised nearly Rs 31,969 crore through the auction of two securities, according to results released by the Reserve Bank of India. It sold Rs 20,988.272 crore of the 6.36% Government Security 2031 and Rs 10,981.043 crore of the 7.71% Government Security 2066, against notified amounts of Rs 21,000 crore and Rs 11,000 crore.
The auction drew competitive bids worth Rs 50,030 crore for the 2031 bond and Rs 34,560 crore for the 2066 bond. Cut-off yields were 6.3647% and 7.5618%, respectively. Primary dealers took the full underwritten amounts, with no devolvement.
The Indian Opinion
A large bid total can be presented as proof of strong investor confidence, while the absence of devolvement can be treated as a routine detail. Both readings are too neat. The auction shows demand comfortably exceeded supply, but it does not reveal whether buyers expect rates to fall or simply needed government paper. The better test is the next few auctions, especially whether cut-off yields move higher and whether primary dealers continue absorbing the full notified amounts.
Source: rbi.org.in
This story was synthesised by AI from the source linked above.
