RBI to auction government stock
Published February 8th, 2007
RBI has announced that it will auction 7.37% Government stock 2014` for a notified amount of Rs 60 billion on Feb. 9. On the same day, it will sell `8.33% Government Stock 2036` for Rs 30 billion.
The investors remained on the sidelines ahead of this auction, said a dealer. “There is also no investment demand because of which there were low activities in the G-sec segment today“, he added further. The total volumes were as low as Rs 16.1 billion as a whole, he reported.
However, the liquidity condition in the market is improving on the back of government spending and RBI`s intervention in the forex market. The call rates have come down to 8% in the market session, he explained. Moreover, the amount borrowed by banks via RBI`s repos have declined to Rs 70 billion today. It used to be Rs 200 billion plus amidst the tight liquidity conditions during December`06 - January`07.
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