RBI accepts only ₹4,506cr of ₹11,000cr 6.20% 2029 bond auction
On September 11, the Reserve Bank of India, or RBI, made a rare move, accepting only ₹45.06 billion in bids for its 6.20% 2029 bond, far less than the planned ₹110 billion.
This is the first time since 2025 it has partially canceled a government securities auction, signaling it is serious about keeping borrowing costs from spiraling and calming surging bond yields.
Three-year yield jumps to 6.4566%
Bond yields were all over the place: seven-year bonds sold at higher-than-expected rates, and the three-year 6.20% 2029 bond jumped to a yield of 6.4566%, up sharply from just four weeks ago.
Meanwhile, a new 30-year bond landed right where markets hoped, showing RBI is working hard to steady things as the RBI partially canceled an auction of shorter duration government security to curb any further spike in bond yields.