Bond traders request RBI to shift to multiple price auctions of govt debt

In a uniform price auction, traders are wary of bidding at price levels that are way off the prevailing price of a bond in the secondary market

At a recent meeting with senior officials of the Reserve Bank of India, participants in the government bond market suggested that the central bank shift back to the multiple price method for primary auctions of sovereign debt, sources told Business Standard.

The meeting was one of a series of interactions held with RBI officials before the release of the Centre’s market borrowing calendar for the first half of the next financial year. The borrowing calendar for April-September is usually released around the end of March.

The RBI is the government’s debt manager. In the Union Budget for 2023-24, the government