Auctions Eyed After Successful GSAP Operation

The RBI will sell INR 320bn of debt at auction today, results due after 1030BST/1500IST)

• INR 110bn 5.63% 2026 (last sold on June 4, yield 5.5853%, the sale saw INR 107bn taken by primary dealers)
• INR 40bn FRB 2033 (last sold on June 4, yield 4.8974%, cover 6.28)
• INR 110bn 6.64% 2035 (last sold on June 4, yield 6.6726%, cover 2.74)
• INR 70bn 6.67% 2050 (last sold on June 4, yield 6.9742%, cover 3.38, INR 19.4bn taken by primary dealers)
• Also today the RBI will conduct an INR 2tn 14-day reverse repo auction, details here.
• Yesterday the RBI conducted its final operation under GSAP 1.0, the Bank purchased INR 345.8bn of sovereign debt, more than the INR 300bn expected (INR 54.25bn of remaining allocation given to state securities). The RBI bought INR 267.8b of 5.85% 2030 bonds at a cutoff yield of 5.9910%, lower than the 6% estimated. The RBI also bought INR 19b of 7.17% 2028 bond at 6.2686% cutoff yield, and INR 58.8b of 6.64% 2035 bond at 6.6544% cutoff yield. There were no purchases of the 6.97% 2026 bond, the 6.79% 2027 bond, or the 7.59% 2029 bond
• The RBI have also announced the latest operation switch which will take place on June 21. The Bank will swap a total INR 100bn of short dated debt for longer maturities. Details here.