Primary dealers rescue RBI's bond auction for the sixth time this year

Primary dealers bought Rs 19,400 cr of debt, equal to about 60% of the Rs 31,000 cr the govt offered at the weekly auction, RBI said in a statement Friday

Bond underwriters stepped in to save a debt auction for the sixth time this year, the most since the 2013 taper tantrum, amid rising global yields. Primary dealers bought Rs 19,400 crore ($2.66 billion) of bonds, equal to about 60 per cent of the Rs 31,000 crore the government offered at the weekly auction, the Reserve Bank of India said in a statement Friday. Dealers bought Rs 10,900 crore of the benchmark 10-year bond out of the Rs 12,000-crore sale target. Bonds extended a drop after the results.
 
The central bank, which is also the government’s debt manager, has