Government raises Rs 150 bn at debt auction

MUMBAI: The government sold Rs 150 billion ($2.7 billion) worth of bonds on Friday. The Reserve Bank of India (RBI) set a cut-off at 8.3401 percent or Rs 99.17 on the 8.19 percent 2020 bond, higher than 8.2901 percent forecast in a Reuters poll.

The cut-off price for 8.33 percent July 2026 bonds was Rs 99.45, yielding 8.3957 percent, the RBI said, higher than the poll forecast of 8.3598 percent.

For the 8.28 percent 2032 bonds, the cut-off price was Rs 97.19, yielding 8.5787 percent, higher than the poll forecast of 8.5613 percent.

For the 8.83 percent 2041 bonds, the cut-off price was Rs 102.22, yielding 8.6188 percent, lower than the poll forecast of 8.6299 percent.

The poll was conducted before the release of the June quarter GDP data, which came slightly better than expected.