The bond prices shot up by about 50 paise on July 16 on the back of the government''s announcement of the details regarding its borrowing programme between July and September. Although the RBI released the auction calendar after market hours, the bond prices grew during the day as the market participants were anticipating a lower weekly borrowing programme, said bond dealers.
Given the current liquidity, Rs, 50,000 crore of additional borrowing will not be very difficult for the market to absorb.
There were expectations that Rs 15,000 crore of government securities would be issued by RBI every week. But, according to the RBI''s auction calendar, it will issue Government securities worth Rs 12,000 crore every week till September.
In the last two weeks of September, the Central bank will issue securities worth Rs 7,000 crore and Rs 8,000 crore.
Given the current liquidity, Rs, 50,000 crore of additional borrowing will not be very difficult for the market to absorb.
There were expectations that Rs 15,000 crore of government securities would be issued by RBI every week. But, according to the RBI''s auction calendar, it will issue Government securities worth Rs 12,000 crore every week till September.
In the last two weeks of September, the Central bank will issue securities worth Rs 7,000 crore and Rs 8,000 crore.
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