The Hindu Business Line : RBI auctions 2 G-Secs worth Rs 8,000 crore

One of the papers was devolved on the primary dealers, as bids were few. However, the amount was not very huge. According to a primary dealer, the reason for the devolvement was that bids were at higher levels.

"The devolvement amount was not much. Even those PDs who got the devolvement made a profit by selling it later as the cut-off yield was better than expected," he said.

The 2016 10-year paper for Rs 5,000 crore was auctioned for the first time. The auction was yield-based using multiple price method.

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It was fully subscribed with the Reserve Bank of India setting the cut-off yield at 7.59 per cent, against the market expectation of 6 per cent.

The RBI received 208 competitive bids, amounting to Rs 11,286.2 crore. Of this, RBI accepted 78 bids, amounting to Rs 4,972.44 crore.

The partial allotment percentage of competitive bids was 57.76 per cent from 18 bids. The weighted average yield was 7.55 per cent.

RBI also received and accepted 21 non-competitive bids amounting to Rs 27.55 crore. The partial allotment percentage was 100 per cent.

Devolvement on the RBI was nil.

In the 7.5 per cent 28-year 2034 paper for Rs 3,000 crore, the devolvement on primary dealers was Rs 324.1 crore.

RBI received 119 competitive bids amounting to Rs 6,410 crore. The cut-off price was Rs 94.73 (7.97 per cent YTM). The market was expecting the cut off yield at 8.5 per cent, said dealers. RBI accepted 21 bids amounting to Rs 2,664 crore.

The partial allotment percentage of competitive bids was nil. The weighted average price was Rs 96.47. RBI also received and accepted eight bids for Rs 11.9 crore. The partial allotment percentage of non-competitive bids was 100 per cent.