Government To Sell Dated Securities Worth Rs 15,000 Crore

Mumbai: The government will sell four dated securities for Rs 15,000 crore on November 11, of which up to 5 per cent will be allotted to individuals and institutions.

The auctions will be conducted using the multiple price method, the Reserve Bank of India said in a statement. The stocks will qualify for the ready forward facility.

"Up to 5 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities," the RBI said.

India Ratings said the government's upcoming repurchase auction (of Rs 15,000 crore) will alleviate some pressure on demand-supply dynamics in the debt market - as a combined gross supply of over Rs 1,000 crore is scheduled this week in the form of both central and state government borrowings.

Easy interbank liquidity conditions suggest limited need for durable liquidity injection, keeping scope for open market purchase operations dim in the near term, it said in a report.

"Incremental scope for yields to soften significantly from the current juncture is limited on account of two major factors -- front-loaded open market operations by the Reserve Bank of India and global volatility as key events unfold," the rating agency said.

It further said the 10-year G-Sec yield could trade at 6.78-6.89 per cent (6.82 per cent at close on November 4).

According to it, the rupee is likely to trade at 66.50 -67.30/dollar.