Reserve Bank of India cut-off yield for some state government bond
Posted on: 19/Apr/2016 11:31:01 AM
On Monday the Reserve Bank of India (RBI) set cut-off yield for some state government bonds at a six-month low, in the first tranche of auctions for the financial year 2016/17, due to lower amounts, strong demand from state-owned banks and insurers, traders said.
The RBI set a cut-off yield of 7.98 percent for 10-year bonds raised by Kerala, Meghalaya, Nagaland, Punjab, Rajasthan, levels last seen on Oct. 13. Some traders said a large state-owned insurer may have absorbed a chunk of the debt sale. The cut-off yields were in 7.98 to 8.02 percent range.
