Poor Appetite At Rbi Auctions

The twin auctions of securities adding up to Rs 6,000 crore today devolved to the extent of 55 per cent. The auction of Rs 2,000 crore of the 8.35 per cent, 2022 paper almost fully devolved as the Reserve Bank of India (RBI) received only a single bid of Rs 1 lakh while the balance Rs 1,999.99 crore devolved on the central bank itself. The auction of Rs 4,000 crore of the 7.40 per cent, 2012 paper too devolved to the extent of 33 per cent (Rs 1,321.70 crore) on the primary dealers.

Money market dealers said the devolvement of the 20-year paper was expected, but the devolvement of the 10-year paper came as a surprise.