Reserve Bank cancels bids for bonds worth Rs. 11,000 crore

The Reserve Bank of India has refused to accept bids for Rs 11,000 crore worth of bonds in the final auction of this calendar year.

In all, four bonds for Rs 15,000 crore were on offer. Bids for two bonds–one maturing in 2022 (Rs 3,000 crore on offer) and another in 2031 (Rs 8,000 crore)—were rejected by the central bank. It sold the remaining two bonds worth Rs 2,000 crore each and maturing in 2033 and 2046.

RBI said that high yields would not be acceptable to the central bank or the government. Also, and that the yield movement have been over the top in a short span.