Reserve Bank of India leaves 10-year bond unsold in auction, rejects bids

The rejection of the bids brought down yields by 2 basis points and the 10-year bond closed at below 6 per cent again, at 5.99 per cent

The Reserve Bank of India (RBI) decided not to sell 10-year bonds in Friday’s auction, signalling it will not accept yields above 6 per cent.  

The rejection of the bids brought down yields by 2 basis points and the 10-year bond closed below 6 per cent again — at 5.99 per cent. 

The RBI had scheduled to auction Rs 14,000 crore of bonds on Friday. The underwriters were paid for the auction, but the RBI decided not to sell to them either.

This was part of a Rs 26,000-crore primary auction. In Friday’s auction, the central bank also introduced a new 3-year bond