The Reserve Bank of India on Friday announced the results of its latest government securities auction, raising a total of Rs 31,000 crore through the sale of two long-dated bonds, with investor demand remaining firm and no devolvement on primary dealers.
The auction included the 6.01% Government Security 2030, with a notified amount of Rs 18,000 crore, and a new Government Security 2076, notified for Rs 13,000 crore. Competitive bids for the 2030 paper stood at Rs 54,460.23 crore, nearly three times the notified amount, while bids for the 2076 bond totalled Rs 37,390 crore.
The cut-off price for the 6.01% GS 2030 was set at 98.21, implying a yield of 6.4743%. The RBI accepted Rs 17,998.53 crore of competitive bids, with partial allotment applied to select bids. The weighted average yield stood at 6.4690%.
For the new GS 2076, the cut-off price was 100.00, translating into a yield of 7.4300%. Competitive bids accepted amounted to Rs 12,993.45 crore, with partial allotment applied to multiple bids. The weighted average yield came in at 7.4269%.
Non-competitive bids were modest and fully accepted for both securities. Underwriting commitments fully covered the notified amounts, and there was no devolvement on primary dealers, indicating smooth absorption of the supply despite the ultra-long maturity profile.