The Hindu Business Line : G-sec auctions fully subscribed

The auctions of the 7.4 per cent six-year 2012 government security and the 7.95 per cent 26-year 2032 government security were fully subscribed as the cut-off prices for both papers were in line with the market expectations.

According to a dealer, there was some apprehension in the long-term paper that it may be devolved on primary dealers, but there was real interest from insurance companies.

For the 7.4 per cent 2012 paper, the notified amount was Rs 6,000 crore. The Reserve Bank of India received 224 competitive bids amounting to Rs 11,593 crore. The cut-off price was Rs 101.64 (7.06 per cent YTM). Of these, the RBI accepted 126 competitive bids.

The partial allotment percentage of competitive bids was 38.85 per cent from 11 bids. The weighted average price was Rs 101.74. The RBI also received and accepted 14 non-competitive bids amounting to Rs 12.46 crore. The partial allotment percentage on non-competitive bids was 100 per cent.

For the 7.95 per cent 2032 paper the notified amount was Rs 4,000 crore. The RBI received 160 bids amounting to Rs 9,399.5 crore. The cut-off price was Rs 99.33 (8 per cent YTM). Of these, it accepted 61 competitive bids.

The partial allotment percentage of competitive bids was 47.56 per cent from one bid. The weighted average price was Rs 99.65.

The RBI also received and accepted 14 non-competitive bids for Rs 18.15 crore. The partial allotment percentage on non-competitive bids was 100 per cent. Devolvement on primary dealers was nil for both papers