The Government has decided to issue a new 10-year Government Security (G-Sec) at the next weekly auction on August 19.
This comes in the wake of the outstanding amount in the 10-year benchmark G-Sec (coupon rate: 6.54 per cent) touching ₹1.56-lakh crore. This paper was first issued on January 17.
Usually, when the outstanding in a G-Sec reaches ₹1-lakh crore to ₹1.50-lakh crore, the Government issues a new paper.
The yield of the 10-year benchmark G-Sec rose 2 basis points to last trade at 7.2894 per cent (previous close: 7.2673 per cent). The price of this paper declined 14 paise to close at ₹94.95 (₹95.09).
After 3-4 auctions, the new 10-year G-Sec will become the benchmark, replacing the 6.54 per cent paper.