Mumbai: RBI on Friday issued a new benchmark bond, 10-year paper due in 2031, at the results of 6.10%.
This is 25 basis points (100bps = 1 percent percentage) higher than previously issued in December 2020.
The ‘when issuing’ segments of the RBI bond trading platform also showed the results to be set at that level.
As the name segment shows, the RBI allows market players to trade bonds to be released in the next few days.
New 10-year bonds began to be traded in this segment on July 5, the government day announced it would introduce a new benchmark gilt.
The issuance of new benchmark bonds in higher results shows the willingness of the central bank to receive an increasing level.
During the day, the RBI also announced that all countries would jointly borrow nearly Rs 1.9 lakh crore in the current quarter ended September 30.
This is around RS 20,000 Crore more than what was announced before.
Bond dealers say that the number of extra loans can provide extra pressure on results in the coming months.
This, in turn, can also put pressure on the results in the bond market, he added.