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Govt introduces a new 10-year benchmark bond at a coupon of 7.17%

Against the older 10-year benchmark, the government had raised Rs 1.21 trillion

Anup Roy  |  Mumbai 

Better rated firms moving to bond mkt, says RBI report

The on Friday introduced a new 10-year benchmark bond at a coupon of 7.17 per cent — much lower than the existing 10-year bond that closed at 7.29 per cent. Against the new bond, Rs 90 billion was issued. Against the older 10-year benchmark, the had raised Rs 1.21 trillion. There is always a difference in yields between two The older series, which would no longer be used to raise funds, get higher yields as traders add illiquidity premium.
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On Friday, the RB I auctioned worth Rs 180 billion, of which Rs 90 billion was of the new 10-year ones. Investors bid 281 times for up to Rs 476.4 billion for the bond, of which accepted 93 bids, amounting Rs 90 billion, data revealed.
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First Published: Sat, January 06 2018. 01:43 IST
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