Business Standard

Rs 31,000-crore govt bond auction sees firm demand on short covering

The Reserve Bank of India set the cut-off price on the 7.41%, 2036 bond at Rs 101.90, against the market expectation of around Rs 101.83

Bonds, Govt bond
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Illustration: Ajay Mohanty

Anjali Kumari Mumbai

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The Rs 31,000 crore government bond auction saw firm demand as traders covered their short bets at the auction, dealers said. The cut-off prices that were set were higher than expectations. 
 
Typically, traders place short bets ahead of weekly fresh bond supply to cover at auctions.

The government offered to sell Rs 7,000 crore of the 7.17 per cent, 2030 bond, Rs 12,000 crore of the 7.41 per cent, 2036 bond, and Rs 12,000 crore of the 7.25 per cent, 2063 bond at the auction.

The Reserve Bank of India set the cut-off price on the 7.41%, 2036 bond at

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First Published: Jun 23 2023 | 7:17 PM IST

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