RBI Announces Yield For New Benchmark 10-Year Bond

The Reserve Bank of India has set the cutoff yield for the new 10-year government securities maturing 2034 at 7.1889%. It also set the yield of the new 50-year bond maturing 2073 at 7.3338%.

The notified amount for the 7.10% GS 2034 was Rs 20,000 crore and for the 7.46% GS 2073, it was Rs 12,000 crore. Both the gilts were fully subscribed at the auction on Friday, the RBI said in a statement.

The quantum of about Rs 1.53 lakh crore set for the current 10-year bond had been breached early this year. The outstanding stock for the benchmark security stands at Rs 2.01 lakh crore, according to the data from the RBI. This became the second security through which the borrowing exceeded Rs 2 lakh crore after the bond maturing in 2063 crossed the mark in January this year.

The current 10-year bond was launched in August 2023, with a coupon rate of 7.18% and is set to mature in 2033. The yield of the new security is set at about 2 basis points lower than the current benchmark yield, which is trading at 7.2% as of 1:47 p.m. on Friday.