Government to float new 10-year paper

Government to float new 10-year paper

Mumbai: The government will float a new 10-year bond worth Rs5,000 crore in the impending Rs12,000 crore auction to be held on 30 April, the Reserve Bank of India said on Monday.

The central bank did not disclose any other details.

The new issue will render the current 10-year bond, which has a coupon of 6.35%, ‘illiquid’ or less traded.

The news came after the markets close and traders, in anticipation of such news, traded the six-year benchmark paper the most, against the typical practice of trading the 10-year paper the most.