RBI devolves 10-yr bond auction for fourth time, underwriters step in

Bond dealers say the central bank has singled out the 10-year bonds as marquee rate setting bonds and is trying to put out a forceful rate signal

The Reserve Bank of India (RBI) refused to sell 10-year bonds at Friday’s primary auction for the fourth time in a row, a day after it scrapped a bond purchase programme from the secondary market, even as it received more than six times the bid for its Rs 10,000-crore open market operation (OMO).

The central bank did not want to sell the 10-year bonds at the market ask on Friday, like the previous three times, even as it is letting the other bonds being sold to investors. The securities had to be bought by the underwriters of the bonds, mainly primary