Money & Banking

Prices of G-Secs correct sharply ahead of Friday auction

Our Bureau | Updated on: Apr 28, 2022

Word BONDS composed of wooden letters. Closeup | Photo Credit: TolikoffPhotography

Government plans to raise ₹33,000 crore via auction of four G-Secs

Prices of government securities (G-Secs) saw a sharp correction as traders offloaded securities to create room for placing bids at Friday’s auction.

Price of the 10-year benchmark G-Sec/GS (coupon rate: 6.54 per cent) declined 50 paise to close at ₹95.7250 (previous close: ₹96.2250). Yield of this paper rose about 7 basis points to close at 7.156 per cent (7.0818 per cent).

Bond prices and yields are inversely co-related and move in opposite directions. One basis point is equivalent to 0.01 per cent.

The government plans to raise Rs 33,000 crore via auction of four G-Secs, including the 10-year benchmark G-Sec, on April 29.

Price of the 13-year G-Sec/GS (coupon rate: 6.67 per cent) fell about 31 paise to close at ₹94.3475 (₹94.655). Yield of this paper rose about 4 basis points to close at 7.3316 per cent (7.2941 per cent).

Published on April 28, 2022
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