The reason where the Bids placed are getting lower :- The Reserve Bank of India (RBI) cancelled the Rs 1,000 crore inflation indexed bonds auction on Monday. RBI was selling 1.44% inflation indexed bonds maturing in 2023 in the auction. “RBI may have received bids at very high levels. Since RBI does not want long-term rates to go up so sharply, they rejected all bids,” said a government bond dealer with a public sector bank. RBI has been tightening liquidity in a bid to arrest the fall in the rupee. Due to tight liquidity short-term rates climbed up significantly.
Posted on: Mon, 29 Jul 2013 15:58:18 +0000
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