2018 Gilt Cut-Off Set At Rs 101.40

The Reserve Bank of India (RBI) today set market related cut-offs at the auction of the 6.25 per cent 2018 gilt and the 7.95 per cent 2032 gilt even as the central government privately placed Rs 5000 crore worth of these securities with the central bank to bring down the outstanding ways and means advances (WMA).

The RBI set a cut-off of Rs 101.40 (6.103 per cent) for the 15-year gilt and Rs 121.51 (6.327 per cent) for the 29-year gilt.

Prices of government securities, however, did not move much after the announcement of the auction results.

The auction of the two gilts coupled with their private placement saw the outstanding ways and means advances of the central government, which was Rs 16000 crore as of April 21, drop to Rs 4000 crore.

 

The 15-year gilt, which opened at Rs 101.60 (6.08 per cent), edged up to Rs 101.70 (6.07 per cent) and came off to Rs 101.50 (6.09 per cent) during the auction. Post-auction announcement, the gilt finished at Rs 101.55 (6.088 per cent).

There were hardly any trades reported in the 29-year gilt, post-auction announcement. In early trades this gilt was quoted at Rs 121.10 (6.354 per cent).

As against the notified amount of Rs 5000 crore, the RBI received 319 competitive bids aggregating Rs 9655.25 crore and 26 non-competitive bids for Rs 101.93 crore. The RBI accepted 134 bids for Rs 4898.07 crore and all the non-competitive bids.

As against the notified amount of Rs 2000 crore, the RBI received 131 competitive bids aggregating Rs 4472.75 crore and 19 non-competitive bids for Rs 60.65 crore. The RBI accepted nine bids for Rs 1939.35 crore and all the non-competitive bids.