10.95% 2011 Gilt Put On The Sale Window

The Reserve Bank of India (RBI) has put the 10.95 per cent 2011 security auctioned on Monday, on its sale window at a price slightly above par, at Rs 100.02.

Despite the fact that the security had devolved to the extent of 97 per cent on the central bank at Monday's auction, many in the market feel that the on tap issue will evoke a good response.

Earlier during the day the security had been placed on the sale window at par. However effective today, the security will be sold at a price of Rs 100.02

The auction of the security on Monday had been widely expected to devolve onto the central bank since long dated end of the securities market has been through a strong bearish

 

phase.

Dealers point to the fact that many were unwilling to bid in the auction because of the uncertainty involved in where the yield would finally be set. " Once the yield has been fixed banks and primary dealers are perhaps more willing to take the security despite the lack of appetite for long dated paper," said a primary dealer.