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The Reserve Bank of India (RBI) deferred the Rs 15,000- crore government bond auction to be held this week to Monday. Typically, the auctions are held on Fridays.
According to the Street, the most likely reason for this was the fact that RBI would announce the mid-quarter monetary policy review on Friday due to which the auction might not have got the desired response. There were others who said it was deferred as there was liquidity squeeze in the system due to advance tax outflow. The yield on the 10-year benchmark government bond 7.16 per cent ended at 8.44 per cent on Tuesday, compared with its previous close of 8.43 per cent.
