RBI sells 7.49% bonds at Rs94.51 cut-off

RBI sells 7.49% bonds at Rs94.51 cut-off
PTI
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First Published: Fri, May 11 2007. 05 16 PM IST
Updated: Fri, May 11 2007. 05 16 PM IST
Mumbai: The Reserve Bank of India said on 11 May it had set a cut-off price of Rs94.51 at the auction of 7.49% federal bonds maturing in 2017, lower than market expectations.
The cut-off price corresponds to a yield of 8.3118%.
There was no devolvement on primary dealers, the central bank said. The government reissued the bonds for a total of Rs6,000 crore as part of its scheduled borrowing calendar.
A Reuters poll conducted earlier in the day showed India’s central bank was expected to auction the 2017 bond at a cut-off price of Rs94.95.
The central bank also set a cut-off price of Rs96.71 at the auction of the 8.33% federal bonds maturing in 2036, higher than market expectations.
The cut-off price corresponds to a yield of 8.6399%.
There was no devolvement on primary dealers, the central bank said. The government reissued the bonds for Rs4,000 crore.
A Reuters poll earlier in the day expected the cutoff on the 2036 bond at Rs96.38.
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First Published: Fri, May 11 2007. 05 16 PM IST
More Topics: Money Matters | Bonds |