This is the first long-dated security to hit the market after a gap of one month.
The Reserve Bank of India (RBI) has been going slow in the government borrowing programme ever since the forex market has turned volatile.
With this, THE RBI will complete 56 per cent of the Rs 1,17,000 crore gross borrowing programme of the government during the current fiscal.
The poll was conducted by Credence yesterday.
The auction is of special significance as the RBI is conducting it at a time when the appetite for government securities, especially for the long term paper has touched the bottom.
The low appetite is of the market is evident from RBI's provision of swapping option between the three long-dated papers with the 364-day treasury bills.
The last few auctions of long-dated papers have recorded huge devolvements on primary dealers as well as the central bank.
The results of the Credence poll -- which included banks, primary dealers and brokers -- showed that most of the players expect the cut-off to be in the range of 11.30-11.40 per cent.
Most of the dealers expect a large devolvement to the extent of Rs 1,000 to 1,200 crore.
Credence feels that the tight liquidity condition will make it difficult for the RBI to mop up the entire notified amount of Rs 3,000 crore for the 8-year paper.
It expects the RBI to offer an underwriting commission in the 75-80 paise range to the primary dealers.
"With the likely cut-off coupons to be in the 11.32-11.42 per cent range the devolvement is seen in the range of 25-30 per cent of the notified amount of the issue," Credence said.
