RBI once again cancels Rs 110 bn-worth bond auction as yields shoot up

This is the third time since December 29 that the central bank has cancelled, either fully or partly, an auction

The Reserve Bank of India (RBI) on Friday once again cancelled its scheduled auction of dated securities, signalling its discomfort with yields.

The cancellation of Rs 110 billion worth of bonds was a good enough reason for the 10-year bond yields to cool down by a steep 17 basis points from its day's highs. The yields topped 7.67 per cent at noon and then corrected to 7.50 per cent by the afternoon after rumours of potential secondary market bond purchases by the RBI, but the yields rose again to close at 7.56 per cent.  

This is the third time