RBI Successfully Auctions ₹34,000 Crore in New 10-Year Government Security
RBI completes auction for new 10-year government security
The Economic Times
Image: The Economic Times
The Reserve Bank of India completed an auction for a new 10-year government security, raising ₹34,000 crore at a cut-off yield of 6.94%. This yield aligns with market expectations and will serve as a benchmark for corporate borrowing.
- 01RBI auctioned ₹34,000 crore in new 10-year government securities.
- 02The cut-off yield was set at 6.94%, matching market expectations.
- 03Total bids received amounted to ₹1.02 lakh crore, indicating strong demand.
- 04The new security will establish a benchmark for corporate borrowing.
- 05The benchmark 6.48% 2035 bond yield was at 6.9659% during the auction.
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On Friday, the Reserve Bank of India (RBI) successfully auctioned a new 10-year government security, raising ₹34,000 crore (approximately $4.1 billion USD) at a cut-off yield of 6.94%. This yield was in line with market expectations, which anticipated it to be 2 basis points lower than the prevailing market rate. The benchmark 6.48% 2035 bond yield was recorded at 6.9659%, slightly up from 6.9328% the previous day. The auction attracted strong interest, with total bids reaching ₹1.02 lakh crore (approximately $12.3 billion USD), reflecting robust demand. The new security will set a benchmark for corporate borrowing, as all corporate bonds are typically linked to the 10-year yield.
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The new benchmark yield will influence corporate borrowing costs, potentially affecting interest rates for loans and bonds.
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