Lower Cut-Off Price At Omo Auction Hoists Gilt Yields

Yields on government securities headed northwards today as the cut-off price set at the open market operation (OMO) auction of 10.95 per cent 2011 paper was lower than market expectations.

As against the market price of Rs 129.10 (yield : 6.445 per cent), the cut-off price was lower by 60 paise at Rs 128.50 (yield : 6.5252 per cent).

Against the notified amount of Rs 4,500 crore, the central bank received 94 bids aggregating Rs 8,333 crore. It accepted 82 bids for the notified amount. Government papers opened 10 paise higher than Saturday