Fixed Income And Currency Market

21 Feb 2021

Demand is just not there for G-sec auctions even as SDL yields spike

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The G-sec bond auction for Rs 310 billion held last week saw very low demand for bonds and RBI had to devolve more than Rs 200 billion to the bond auction underwriters, close to 70% of the total auction was given to the underwriters. RBI also gave high commission to the underwriters, much more than what they normally pay, in order for the auction to be underwritten.

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Arjun Parthasarathy
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