RBI8217;s Rs 5,000 cr auction devolves

MUMBAI, JUNE 16: The Reserve Bank of India8217;s Rs 5,000 crore twin-bond auction on Wednesday faced a minor problem as out of a notified amount of Rs 2000 crore, Rs 275 crore worth of 12.32 per cent 2011 paper devolved on the primary dealers. The 12-year paper devolved as the bids offered by primary dealers were unreasonably high.

Bond prices ruled steady on Wednesday. The intra-day price movement was only to the extent of 2 to 4 paise. Bond prices held firm as the rupee bounced back to gain 17 paise against the dollar.

With the of the Rs 5000-crore twin auction, the centre has will completed over 46 per cent of its borrowing programme for the current fiscal. The centre8217;s borrowing for the current fiscal has gone up to Rs 39,500 crore against a gross borrowing target of Rs 83,571 crore. Out of the total mop-up, Rs 3500 crore has been raised through the auction of 364-day treasury bills.