Government will sell four dated securities for Rs 15,000 crore on November 11, of which up to 5 per cent will be allotted to individuals and institutions.
The auctions will be conducted using multiple price method, the Reserve Bank said in a statement. The stocks will qualify for the ready forward facility.
"Up to 5 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities," RBI said.
Rating agency Ind-Ra said the government's upcoming repurchase auction (Rs 150 billion) will alleviate some pressure on demand-supply dynamics in the debt market - as a combined gross supply of over Rs 1,000 crore is scheduled this week in the form of both central and state government borrowings.
Easy inter-bank liquidity conditions suggest limited need for durable liquidity injection, keeping scope for open market purchase operations dim in the near term, it said in a report.
"Incremental scope for yields to soften significantly from the current juncture is limited on account of two major factors -- front-loaded open market operations by the Reserve Bank of India and global volatility as key events unfold," the agency said.
Ind-Ra further said the 10-year G-sec yield could trade at 6.78-6.89 per cent (6.82 per cent at close on November 4).
According to it, the rupee is likely to trade at 66.50/USD-67.30/USD.
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