Low cut-off yield sees newly-launched 10-yr bond devolve in second auction

Of the Rs 14,000 crore of bonds on offer, RBI made the primary dealers, or the underwriters buy Rs 11,144.145 cr

The freshly launched 10-year bond witnessed its first devolvement on Friday as the markets asked for higher yields than what the Reserve Bank of India (RBI) was comfortable in the offering.

Of the Rs 14,000 crore on offer on the new bond, the central bank made the primary dealers, or the underwriters of the bonds, buy Rs 11,144.145 crore. This was the second auction of this particular bond, which was launched a fortnight back on July 9.  

The cut-off yield came at around 6.15 per cent in the auction. The yields of this benchmark 10-year bond yield closed at 6.165