The Reserve Bank of India (RBI) accepted bids worth 500 billion rupees at its latest open market purchase auction, matching the notified amount. While no bids were accepted for the 7.18% 2037 bond, cut-off yields were set across other maturities, reflecting investor sentiment and liquidity management priorities.
The Reserve Bank of India conducted its open market purchase auction, aimed at managing liquidity and supporting bond market stability. The auction saw bids worth 500 billion rupees being accepted, aligning with the notified amount. The RBI’s decisions on cut-off yields across various maturities provide insights into current market dynamics and investor appetite.
Key highlights from the announcement include
RBI accepted bids totaling 500 billion rupees, matching the notified size of the auction.
No bids were accepted for the 7.18% 2037 bond, indicating limited investor interest at prevailing levels.
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Cut-off yield for the 6.79% 2029 bond was set at 6.2187 percent.
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Cut-off yield for the 7.26% 2033 bond stood at 6.5990 percent.
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Cut-off yield for the 7.30% 2053 bond was fixed at 7.2785 percent.
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Cut-off yield for the 6.67% 2035 bond came in at 6.7098 percent.
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Cut-off yield for the 6.79% 2034 bond was set at 6.6085 percent.
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Cut-off yield for the 7.61% 2030 bond was determined at 6.3785 percent.
The auction results highlight RBI’s calibrated approach to liquidity management and bond market stability.
The outcome of the auction underscores the central bank’s balancing act between maintaining liquidity and ensuring orderly bond market conditions. By setting cut-off yields across maturities and rejecting bids for certain bonds, the RBI continues to signal its priorities in managing borrowing costs and investor sentiment.
Sources: Reuters, Business Standard, Economic Times