On 7 August, the Reserve Bank of India (RBI) unveiled new 10-year government securities that would raise Rs 14,000 crore when they mature in 2033. The bond will be put up for auction on August 11 between 10:30 and 11:30 a.m. at the regular bond sale. The new 10-year bond’s coupon will be established during the auction.
The 7.06 percent bonds due in 2028, 2033 new government securities, and 7.30 percent bonds maturing in 2053 will be auctioned off using the uniform price technique, the central bank announced in a press statement.
Successful bids in multiple price-based auctions are accepted at the corresponding quoted yield or price for the security. Bids will be taken for the uniform price-based auction at the cut-off yield/price agreed in the auction.
The central bank is expected to publish the new 10-year benchmark bond on the first Monday of August, according to a Moneycontrol story from July 31.
According to statistics from the central bank, the present 10-year benchmark bond yielding 7.26 percent in 2033 has achieved an outstanding value of Rs 1.5 lakh crore, therefore the release of the new benchmark bond was anticipated.
Money market traders predict that the new benchmark bond’s coupon will be between 7.10 percent and 7.20 percent, with a maturity of 2033.
