For current financial year, govt plans to borrow Rs 2.88 trillion in the first half of 2018-19, out of Rs 6.05 trillion planned for entire year
The Reserve Bank of India, which conducted the auction, had set the cut-off yield at about 7.15%
But waiting for the market to self-correct could be costly for the economy
Sovereign bonds in India have sold off for six consecutive months, hurt by concerns of a wider government deficit and higher oil prices
The yields on the 10-year bond closed at 7.47 per cent on Thursday, down from its previous close of 7.53 per cent
RBI sold Rs 4,000 crore in bonds at the auction
The yields on 10-year bonds have risen about 96 basis points since August even after a rate cut by RBI in that month
The RBI said on Friday it was withdrawing the OMO sale that was scheduled for November 23
The 10-year bond yields have risen from 6.41% in July to 6.93% now even as the RBI cut its rates once in August
RBI announced late on Friday its bond purchase plans from the secondary market
Yields on the 10-year bond closed flat on Wednesday from Tuesday's 7.46 per cent