The Reserve Bank of India today set a cut-off price of Rs 101.92 at its Rs 6,000 crore auction of the 6.17 per cent 2023 security. At the cut-off price, which was lower than market expectations, the yield works out to 6.0019 per cent.
The bond market was flat in the evening after the RBI reissued the 20-year stock below secondary market prices. The 6.35 per cent 2020 bond was dealt at 5.8271 per cent, marginally up from its previous close of 5.8170 per cent.
The 10-year benchmark, the 7.27 per cent 2013 bond, was quoted at 5.2746 percent. Against a notified amount of Rs 6,000 crore, the bond auction drew subscriptions of over Rs 10,000 crore.
The RBI will continue to suck out liquidity from the system and follow up today