Auction Of 10-Year Paper Announced

The government has announced an auction of 10-year paper worth Rs 1,000 crore.The auction will be conducted by the Reserve Bank of India (RBI) on Febraury 20, 1997.

During the current financial year up to January 17, 1997, the Centre borrowed a gross amount of Rs 33,812 crore (Rs 24,177 crore net) through normal market borrowing and the other medium and long term instruments including 364-day treasury bills.

At this level, the Centre has mobilised in the current fiscal about 96 per cent of the gross market borrowings envisaged for 1996-97 at Rs 35,294 crore.

The lastest Rs 1,000 crore auction will help the government to reach closer to its targeted programme. In the auction, on the basis of the bids received, RBI will determine the maximum rate of yield at which offers will be accepted. The new stock will qualify for ready forward facility.

Three-day repos auction

The RBI has announced a three-day repos auction of GoI dated securities for parties holding SGL account and current account with it at Mumbai. The bids will be accepted on February 15 and the auction results announced the same evening.