Auction of 40-yr bond sails smoothly

The auction of the new 40-year government securities maturing in 2055 sailed smoothly on Friday along with other securities. The auction of 40-year paper was for Rs 1,000 crore. The total auction size, including the 40-year paper, was Rs 15,000 crore. "The demand for the 40-year paper was primarily from insurers and even some banks and primary dealers bought it," said Badrish Kulhalli, fund manager (fixed income) at HDFC Life.