RBI signals discomfort with sharp yield uptick; issues new seven-year paper

The RBI statement showed for a seven-year paper, the notified amount was Rs 7,000 crore and bids received were worth Rs 22,632 crore

The Reserve Bank of India (RBI) on Wednesday issued a new seven-year paper with yields at 7.1 per cent, even as there was partial devolvement on the 10-year benchmark in auction, indicating discomfort with sharp rise in yields.   

Treasury executives and bond dealers said the fixation of price for the Government of India bond maturing in 2029 was on expected lines. Usually, the trend is of the RBI coming up with a long-term paper, but it has issued bonds whose maturity falls between five years and 10 years, perhaps to ease some pressure on the benchmark.  

The RBI statement showed for