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Government bond auction disappoints for fourth straight week

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


The Reserve Bank of India (RBI) failed to sell all the debt it offered to bidders at an auction for the fourth week in a row on Friday, raising concerns the government may have to pay investors much more to complete this year’s borrowing programme. The RBI, which manages the government’s borrowing programme, was scheduled to sell 120 billion rupees ($1.78 billion) of four different securities. But it could sell only Rs 810 million of the 6.84 per cent 2022 bond to bidders out of the 30 billion on offer. The remaining Rs 29.2 billion had to be bought by the ...

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First Published: Sat, May 12 2018. 02:25 IST