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The auction of four Government Securities (G-Secs) on Friday to raise ₹30,000 crore saw robust investor interest, with the 5.09 per cent G-Sec maturing in 2022 receiving the highest quantum of competitive bids of about 5.8 times the notified amount of ₹3,000 crore.
The weighted average price (WAP) and weighted average yield (WAY) at the auction of the two-year G-Sec was at ₹101.88 and 3.9516 per cent, respectively, as per the results of the auction conducted by the Reserve Bank of India.
Greenshoe option
The government exercised the greenshoe option of ₹2,000 crore, implying that it raised ₹5,000 crore through the auction of this G-Sec.
At the auction of the 5.79 per cent G-Sec maturing in 2030, the RBI received competitive bids of about 3.49 times the notified amount of ₹18,000 crore.
The central bank accepted bids for the notified amount at the auction of 10-year G-Sec at a WAP and WAY of ₹99.68 and 5.8320 per cent, respectively.
At the auction of the Government of India Floating Rate Bond (FRB) maturing in 2033, the RBI received competitive bids of about 4.40 times the notified amount of ₹4,000 crore.
The RBI accepted bids for the notified amount at the auction of the three-year bond at a WAP and WAY of ₹100.05 and 4.5779 per cent, respectively.
At the auction of the 7.19 per cent G-Sec maturing in 2060, the RBI received competitive bids of about 4.14 times the notified amount of ₹5,000 crore.
The RBI accepted bids for the notified amount at the auction of this 40 year G-Sec at a WAP and WAY of ₹110.86 and 6.4310 per cent, respectively.
The government also exercised greenshoe option of ₹2,000 crore, implying that it raised ₹5,000 crore through the auction of 40-year G-Sec.
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