According to media reports, RBI may announce new benchmark bonds on 7th August. The coupon of the benchmark bond could be between 7.10% and 7.20%
RBI Benchmark Bond: The Reserve Bank of India is preparing to launch a new benchmark bond. According to media reports, the 10-year bond could be announced on the first Monday of August. The bond could be announced on August 7. At the same time, its auction is likely to start on 11 August. It is expected that RBI will soon make an official announcement in this regard.
The outstanding amount on the existing 10-year bond at 7.26 per cent 2023 has reached 15 million, according to central bank data. So far it has been observed that RBI launches new bonds after the benchmark bond completes 10 years. Therefore, the announcement of new benchmark bonds is being anticipated soon.
Talking about the coupon, according to the money market dealers, the coupon of the new benchmark bond can be between 7.10% and 7.20%. According to Sanjay Pawar, Fund Manager, LIC Mutual Fund Asset Management, a discount of 3-5 basis points can also be found on the bond. Explain that the coupon of the current benchmark bond was fixed at 7.26%, through which Rs 12 crore was raised.
The bidding during the auction will be in multiple price pattern as per the dealers. Under the multiple price method, the successful bidders will be required to pay for the allotted Government securities at the rate at which they have bid.
