Rs 6000 Crore Gilt On-Tap Sale Today

The central government today placed Rs 6,000 crore of government security -- Rs 2,000 crore of 10.18 per cent 2026 and Rs 4,000 crore of 7.49 per cent of 2017 paper -- with the Reserve Bank of India on 'private placement-cum-tap sale' basis. Both the papers will be on tap sale from tomorrow.

As per the indicative calendar issued by the RBI, these papers were supposed to be auctioned earlier. But the dealers feel that government decided to privately place both the papers as the market sentiment was bad and the yields were going up. Said a dealer: "It seems that the RBI has decided the to sell the papers through open market window as it wants to test the market's view on the yield. The auction route was not taken as a devolvement could have hurt the market sentiment badly."

 

The 7.49 per cent 2017 paper was privately placed at Rs 96.45 equivalent to an estimated yield of 7.90 per cent. The paper closed at 8 per cent today. The 10.18 per cent 2026 papers was privately placed at Rs 115.70 equivalent to an estimated yield of 8.62 per cent. The paper was closed at 8.70 per cent in today's market.