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Journalism of Courage
MUMBAI, June 10: The central government has announced the auction of a seven-year, Rs 2,000-crore dated paper on June 17. The stock will qualify for the ready forward facility.
The announcement has not come as a surprise to fund managers who have been anticipating the auction because of the easy liquidity conditions in the market.
This is the fourth tranch of direct government borrowing in the current fiscal besides a private placement with the central bank. The first market borrowing was on April 21 where the government raised Rs 3,000 crore through a 10-year bond at 13.05 % coupon.
The government later privately placed an additional Rs 5,000 crore worth of these bonds with the RBI on April 24. The private placement was followed by another auction on May 9 where the government raised Rs 3,000 crore.
