RBI holds back selling 10-yr bond indicating advent of new benchmark paper

Govt has raised over Rs 1.19 trillion against existing bond, a limit after which a new paper is issued to ease redemption pressure

The Reserve Bank of India (RBI) did not sell any of its planned Rs 14,000 crore worth of the benchmark 10-year bond in Friday’s auction as market appetite for the paper is on the wane and bidders may have asked for higher yields.
 
This may also indicate RBI’s discomfort in breaching the limit outstanding in the bond, and that a new 10-year bond could be coming any time soon, may be in the next auction itself, say bond dealers.  
 
The government has raised more than Rs 1.19 trillion against the existing bond, a limit after which a new