Govt to sell 15 year bond worth Rs 5000 crore on May 23

Mumbai, May 18 (UNI) Government of India today announced the sale of a new 15 year Government Stock for a notified amount of Rs 5,000 crore (nominal) through yield based auction using uniform price method, a Reserve Bank of India (RBI) release said.

The auction will be conducted by the Reserve Bank of India (RBI) at Mumbai on Tuesday, May 23, the release said.

Up to five per cent of the notified amount of the sale of the stock will be allotted to the eligible individuals and institutions as per the scheme for Non-Competitive Bidding Facility in the auction of Government Securities for both the auctions, the release added.

The call money rate closed flat in the range of 5.50 to 5.60 per cent as comfortable liquidity situation prevailed in the money market.

In the call money market operations yesterday, the Reserve Bank of India had borrowing and lendings worth Rs 12,279.26 crore each on the weighted average rate of 5.55 per cent.

In the reverse repo auctions, the central bank absorbed Rs 64,315 crore through the daily auctions.

In the first one day auction in the morning, the central bank absorbed Rs 33,790 crore through 33 bids received at the rate of 5.50 per cent.

In the second one day auction in the afternoon, the central bank absorbed Rs 30,525 crore through 40 bids received at the rate of 5.50 per cent.

The central bank did not inject any money in the market through repo auctions.

Bond prices closed lower concerned over the violent fluctuations in prices in the global commodity markets and on the back of rising inflation and interest rate.

The 11 year 8.07 per cent 2017 bond price closed at Rs 102.63.

The yield closed at 7.70 per cent.

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