Amid global rout, govt cancels last bond auction of FY21

The government decided to cancel the auction on review of its cash balances, RBI said in a statement after close of markets Monday

In a relief to the bond market, the government has canceled the last bond auction of the current financial year, scheduled on March 26.  

The government had planned to raise Rs 20,000 crore through the auction, but the Reserve Bank of India (RBI) notified on its website that it stands canceled now “on review of the position of cash balance” of the government.  

This was not entirely unexpected by the market, said a bond dealer, as there were rumors in the market already that the last auction would be canceled.  

The bond market had a scare last week as a