G-sec auction yield movement during FY22-
During Apr-June 2021,10-year benchmark (5.85% 2030) auction yield declined to 5.99% from 6.05%. However, during July-Sep 21, 10-year benchmark (6.10% 2031) auction yield rose to 6.18% from 6.10% touching peak level of 6.23% during Aug-21. During Oct- Dec 21, 6.10% 2031 auction yield increased to 6.40% from 6.23%. During last quarter of current fiscal year, new 10-year benchmark (6.54% 2032) yield increased to 6.77% from 6.54%.
RBI Bond purchase during FY22-
During FY22, RBI has purchased Government of India bonds worth Rs 2245.75 billion through G-SAP and special OMO while sold government bonds of Rs 400 billion.
Market Borrowing during FY22-
Rs billion | Gross Borrowing | Net Borrowing |
Government of India | 11043.82 | 8401.03 |
SDLs | 6370.54 | 4655.08 |
During FY22, total conversion of government bonds stood at Rs 1365.97 billion.
Government bonds, SDL and OIS yield movements
Last week, 6.54% 2032 paper yield rose by 5 bps to 6.86% while 6.10% 2031 yield increased by 5 bps to 6.89%. 5.63% 2026 yield rose by 5 bps to 6.08%. 6.64% 2035 yield gained 3 bps to 7.18%. Long-term paper, 7.16% 2050 yield rose by 7 bps to 7.3%.
The spread of 10-year bond over 5-year bond declined to 78 bps from 81 bps from previous week. The 15-year benchmark over 10-year benchmark spread rose to 31 bps from 28 bps while 30-year benchmark over 10-year benchmark spread increased to 43 bps from 40 bps on weekly basis.
Average 10-year SDL auction cut-off rose to 7.25% from 7.15% in previous week while spread rose to 36 bps from 34 bps.
On weekly basis, 1-year OIS yield rose by 14 bps 4.54% while 5-year OIS yield increased by 14 bps to 5.94%.
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