After announcing plans to suck Rs 12,000 crore through sale of bonds, the RBI today chose to accept a little more than one-fifth of the amount, rejecting offers for short-term parking of funds.
While the total bids were to the tune of Rs 24,279 crore a significant part of it was for a period of up to nine years, the bank chose to accept bids worth only Rs 2,532 crore which will be kept by it upto a maximum of 17 years.
With rupee touching low levels, RBI on Monday had come out with slew of measures, including sucking out liquidity worth Rs 12,000 crore through the OMO, to stem the slide.
The rupee today extended losses for the second day, dropping 33 paise to 59.67 against dollar.
As per the summary results of the auction, the RBI accepted 11 bids worth Rs 777 crore for the 2026 bonds and 10 bids worth Rs 1,755 crore for 2030 bonds.
The results released by the RBI revealed that no bid for 8.07 per cent, 2017 bonds and 8.15 per cent, 2022 bonds was accepted.
It further said the cut-off price was Rs 100.75 (cut off yield 8.2343 per cent) for 2026 bonds and Rs 103.8 (cut off yield 8.5444) for the 2030 bonds.
The measures unveiled by RBI on Monday night came after high level meetings between the Prime Minister and the Finance Minister followed by discussions with RBI Governor D Subbarao who was called here today after the rupee touched over 61-levels last week.
