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RBI raises R20K crore in biggest-ever bond auction, yields fall

There was redemption of Rs 40,751.20 crore worth of the 7.37 per cent bond maturing in 2014 on Wednesday.

By: ENS Economic Bureau | New Delhi | Updated: April 17, 2014 11:32:07 pm

The yield on the benchmark 10-year bond fell the most in a single day in three months on Thursday, after the Reserve Bank of India fully sold bonds over Rs 20,000 crore in its biggest-ever auction under the government’s market borrowing plan.

The 10-year benchmark bond yield ended at 8.85 percent, down 11 basis points.

The Reserve Bank offered to sell Rs 5,000 crore of 8.35 per cent (2022) bond, Rs 9,000 crore of 8.24 per cent-(2027) bond and Rs 3,000 crore each of 9.20 per cent (2030) and 9.23 per cent (2043) bonds.

There was redemption of Rs 40,751.20 crore worth of the 7.37 per cent bond maturing in 2014 on Wednesday.

According to dealers, LIC bought the majority of long-term offering on Thursday — the 9.20 per cent (2030) and 9.23 per cent (2043) bonds.

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