The Reserve Bank of India (RBI) today announced an auction of a 20-year paper for Rs 5,000 crore. This will be held on September 3. And Rs 5,000 crore worth of open market operation will follow this on September 8.
While 20-year government security will be floated in the primary auction, the OMO sale is through an auction of 16- year 6.05 per cent 2019 gilt.
According to the market, the auction was as per the schedule released by the RBI for the year 2003-04 but the notified amount was less than the Rs 9,000 crore indicated in the auction calender.
There is abundant liquidity in the market which has been witnessing a daily average repo subscriptions to the tune of around Rs 16,000-Rs 22,000 crore.
Today, RBI
