RBI raises USD 3.3 billion in biggest-ever bond auction

The Reserve Bank of India (RBI) has fully sold the Rs 200 billion ($3.31 billion) worth of bonds on offer at its biggest auction ever, sparking strong gains in debt markets.

The 10-year benchmark bond yield on Thursday fell 4 basis points to 8.93 per cent from 8.97 per cent before the auction results after the better-than-expected cutoffs. The yield was down 3 bps on the day.

RBI set the cut-off price for 8.35 per cent 2022 bonds at Rs 95.45, yielding 9.1584 per cent, while the cut-off price for 8.24 per cent 2027 bonds were set at Rs 92.05, yielding 9.3122 per cent.

The cut-off for 9.20 per cent 2030 bonds were set at Rs 99.50 rupees, yielding 9.2585 per cent, while 9.23 per cent 2043 bonds were set at Rs 99.27, yielding 9.3004 per cent.

(Reuters)