India to sell new 10-year government bond on October 3 to raise $3.6 bn

India will auction a fresh 10-year government bond on October 3 to raise 320 billion rupees ($3.6 billion), the country's central bank said on Monday, with the new security becoming the benchmark in coming weeks.

 

The current benchmark 6.33 per cent 2035 bond has an outstanding of 1.8 trillion rupees. 

The government has said it will borrow 6.77 trillion rupees through bonds in the second half of the fiscal year. It has increased the share of 10-year bond in second half borrowing, while reducing that of the ultra-long 30- to 50-year bonds. 

As a result, the benchmark bond fell on Monday, following an increase in the share of their issuance, with the yield ending at 6.5547 per cent.