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Auction Size Exceeds Announcement

INDIA

Auctions on Friday were smooth, the RBI took the opportunity to sell more than the advertised amount amid decent demand. The central bank sold INR 378bn against an announced target of INR 320bn. The move saw bonds give up early gains though, yields finished around 1bps higher.

Auction Results:

Line

Planned Amount (INR bn)

Actual Amount (INR bn)

Yield

Bid/cover

5.63% 2026

110

135

5.5597%

2.296296

FRB 2033

40

44

4.8779%

5.931818

6.64% 2035

100

125

6.5910%

2.56

6.67% 2050

70

74

6.8698%

2.256757

  • The RBI also approved an INR 991.2bn dividend to the government on Friday, higher than expected, which helped assuage some worries over coronavirus financing for the finance ministry.

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