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RBI To Change Auction Method

INDIA

The RBI announced yesterday it would purchase INR 200bn of bonds through its GSAP 2.0, the issues eligible are less liquid than under the first set of purchases. The Bank also announced Friday's INR 260bn auction would feature a new 10-year bond.

  • The RBI confirmed yesterday that it will start using the uniform price auction method for auctions, there will be an exception for 30- and 40-year issues which will be auctioned using the multiple price method. The Bank hopes that the method will lead to stronger bids and thus lower yields by avoiding the "winners curse".

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