RBI raises $3.3 billion in biggest-ever bond auction

The Reserve Bank of India on Thursday fully sold the 200 billion rupees ($3.31 billion) worth of bonds on offer at its biggest auction ever, sparking strong gains in debt markets.

The Reserve Bank of India on Thursday fully sold the 200 billion rupees ($3.31 billion) worth of bonds on offer at its biggest auction ever, sparking strong gains in debt markets.

The 10-year benchmark bond yield fell 4 basis points to 8.93% from 8.97% before the auction results after the better-than-expected cutoffs. The yield was down 3 bps on the day.

The RBI set the cut-off price for 8.35% 2022 bonds at Rs 95.45, yielding 9.1584%, while the cut-off price for 8.24% 2027 bonds were set at Rs 92.05, yielding 9.3122%.

The cut-off for 9.20% 2030 bonds were set at Rs 99.50, yielding 9.2585%, while 9.23% 2043 bonds were set at Rs 99.27, yielding 9.3004%.