You are here: Home » Finance » News » Others

Central Bank likely to be out of PCA framework in some three months

Business Standard

RBI devolves bonds in auction, dodges market demand for higher yields

Central bank signals that it is no longer willing to continue with its easy money policy

RBI | Bonds

Anup Roy  |  Mumbai 

The RBI forced underwriters of government bond auctions to buy nearly a third of the instruments on sale Friday, as the markets demanded higher yields. Out of the Rs 24,000 crore bonds on offer in the auction, the central bank devolved, or let the underwriters buy Rs 7267.683 crore. That is about 30 per cent of the total bond auction mainly at the medium-term maturity segment.

The last such devolvement had happened on July 30. “The signal to us was very clear. Don’t be opportunistic,” said a senior bond dealer with a private bank requesting anonymity. Bond ...

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, December 24 2021. 20:09 IST