Part of 10-year bond left unsold in auction as traders demand higher yield

The cut-off yield in the auction of this bond came at 5.96 per cent, against its coupon of 5.77 per cent. The bond was launched just last week

Just within a fortnight of its issuance, a portion of the benchmark 10-year bond remained unsold in Friday’s auction as traders demanded higher yield.

The Reserve Bank of India (RBI) planned to sell Rs 30,000 crore through four bonds, including Rs 18,000 crore of the new 10-year bonds. However, Rs 4,637.93 crore of the planned amount remained unsold. The cut-off yield in the auction of this bond came at 5.96 per cent, against its coupon of 5.77 per cent. The bond was launched a fortnight ago and replaced another 10-year bond that was the benchmark for just three months. Generally, the