RBI G-Sec Auction Sees Strong Demand, Yields at 6.1252% and 7.1782%
The Reserve Bank of India (RBI) recently conducted an auction for two Government of India securities (G-Secs), attracting significant interest. The cut-off prices and yields for 6.01% GS 2030 and 7.09% GS 2074 were announced, with the entire notified amount accepted by primary dealers.
The cut-off price for 6.01% GS 2030 stood at Rs 99.52, with an implicit yield of 6.1252%. Meanwhile, the cut-off price for 7.09% GS 2074 was Rs 98.80, yielding 7.1782%. Notably, no devolvement was reported on primary dealers for either security, indicating strong demand.
The notified amount for 6.01% GS 2030 was Rs 18,000 crore, and for 7.09% GS 2074, it was Rs 12,000 crore. Despite the substantial sums involved, the auction results did not specify which Indian states issued state bonds in September 2022, raising at least 5,000 crore in dormant funds.
The RBI's auction for these two G-Secs was successful, with high demand from primary dealers. The yields and cut-off prices indicate a positive response from investors. However, further details on state bond issuances remain unclear.
