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RBI Auctions ₹30,000 Cr Govt Bonds: What You Need to Know
18 Dec
Summary
- RBI will conduct an underwriting auction for ₹30,000 crore in Government Securities.
- Two securities are on offer: ₹18,000 crore of 6.01% maturing in 2030 and ₹12,000 crore of 7.09% maturing in 2074.
- The RBI also concluded an Open Market Operation purchase of ₹50,000 crore in Government Securities yesterday.
The Reserve Bank of India (RBI) has announced that an underwriting auction for Government Securities totaling ₹30,000 crore is scheduled for tomorrow, December 19th. This auction will feature the re-issue of two key securities: ₹18,000 crore of the 6.01% Government Security maturing in 2030 and ₹12,000 crore of the 7.09% Government Security maturing in 2074. Primary Dealers will participate in this multiple price-based auction.
In parallel, the RBI released the cut-off yields and prices from its Open Market Operation (OMO) purchase conducted yesterday, December 18th. This OMO operation involved an aggregate notified amount of ₹50,000 crore across seven government securities with maturities ranging from 2029 to 2054. The highest amounts were accepted for securities maturing in 2032, 2033, and 2035.
The auction process for the new securities will take place on the RBI's e-Kuber system between 9:00 am and 9:30 am. The underwriting commission will be credited to the Primary Dealers' accounts on the issue day. The detailed results for the OMO purchase are expected shortly, providing further insight into market liquidity management by the central bank.
