Auction Details Announced

The RBI announced the details of this week's auction on Friday, to sell a total INR 320bn government securities.

• INR 110bn 5.63% 2026
• INR 40bn FRB 2033
• INR 100bn 6.64% 2035
• INR 70bn 6.67% 2050
• There were reports earlier this week that the RBI was active in the secondary market, and is suspected to have bought around INR 150bn of newly issued 182-day bills. It is thought that the RBI bought the bills for its Operation Twist requirements where it buys longer bonds and sells bills and shorter-dated bonds
• Markets will await the release of the minutes from the April meeting, the main point of the meeting was the announcement of the GSAP programme, participants will parse the minutes for signs that there is still dry powder after the first round of the programme was largely ineffective.
• On the coronavirus front, though cases continue to surge an Indian developed COVID-19 vaccine showed 78% efficacy, several million doses of Covaxin had already been administered in the country. Despite the relentless rise in cases Indian PM Modi has asked states to avoid imposing strict lockdowns and closing businesses in bid to protect the economic recovery. "I urge states that they should consider lockdowns as the last option," said Modi. "They should earnestly try to avoid lockdown and focus on micro-containment zones." The worsening situation outweighed some positivity on reports that everyone over 18 in India was eligible for the vaccine from May 1.