Two more gold bond issues listed, premium vanishes

Govt is planning fourth tranche of gold bond issue under sovereign gold bond series in the first half of September

Two more tranches of sovereign gold bond issues were listed on exchanges on Monday. However, unlike the first issue, which traded at 8-10 per cent premium, the two issues on Monday closed at around the prevailing market price.

The second tranche, issued in March at Rs 2,600 per gram, closed at Rs 3,125 on NSE on Monday. At the same time, the third tranche, issued in June 2016 at Rs 2,916 per gram, closed at Rs 3,142 per gram. However, the first issue, which has completed 10 months, was trading at a premium of Rs 72 to close at Rs 3,201. Experts said the premium in first issue was due to the annual interest payment of 2.75 per cent.

Liquidity in newly-listed bonds was thin. Meanwhile, the government is planning a fourth tranche of gold bond issue under sovereign gold bond series in the first half of September.