Free Trial

Auction Preview


The RBI are to sell a total INR 320bn government securities today, results due after 1030BST/1500IST.

    • INR 110bn 5.63% 2026 (prev. sale April 9, yield 5.63%, cover 2.25)
    • INR 40bn FRB 2033 (prev. sale April 9, yield 4.84%, cover 3.08)
    • INR 100bn 6.64% 2035 (prev. sale April 9, yield 6.116%, cover 2.69
    • INR 70bn 6.67% 2050 (prev. sale April 9, yield 6.7316%, cover 2.21)
  • The auctions last week were poorly received. The RBI cancelled the 10-year auction on Friday, rejecting all bids for the paper and effectively drawing a line in the sand for yields. The week previously the 5-year sale (the 5.63% 2026 issue) was rescued by underwriters, the seventh such occurrence this year. Underwriters took INR 109bn of the INR 110bn on offer.
  • The coronavirus situation continues to worsen, India reported a global record number of cases yesterday. Mumbai and New Delhi have announced lockdowns, but PM Modi issued a plea to states to use lockdowns only as a last resort. The only potential saving grace from RBI Governor Das is that an economic slowdown could serve to cool inflation with prices near the top of the RBI's 2%-6% band. India is in a somewhat unique position in that while several countries are fighting to subdue yields, most other countries have below target inflation, rather than a risk of an overshoot.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.