- This is higher than that of the current benchmark, which signifies a bit of tolerance for a higher yield after months of trying to keep it at 6% or less.
- RBI sold 3 auctions like new 10 years G-Sec 2031 at 6.10% for Rs14,000 crore, 2023 G –Sec at 4.3% for Rs 3000 crore and 2061 G-Sec at 7.18% for Rs 9000 crore.
- The G-Sec at a high rate by RBI will help the government to increase the cost of borrowings in FY22.
- This also reveals that RBI’s move to accommodate the market demand for higher yields because of inflation which is rising.
- Because of the high cut-off yield, the yields in the secondary market will also increase.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikanta Das
Question:
Q.1 Reserve Bank of India announced to have cut-off yield for the new 10-year bond which will mature in 2031 at ____ per annum?
a. 5.10%
b. 6.30%
c. 6.10%
d. 5.30%
a. 5.10%
b. 6.30%
c. 6.10%
d. 5.30%
