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The RBI announces the sale of three long-term central government bonds, with an indicative yield of above 7%

Three long-duration central government bonds (CGBs) will be put up for auction this week, according to the Reserve Bank of India (RBI). The bonds' indicative yields are 6.97%, 7.08%, and 7.13%, respectively, and they will expire on April 17, 2030, December 19, 2036, and September 19, 2062.
The center is anticipated to borrow around Rs. 15.43 lakh crore from the market in 2023–24, with Rs. 8.88 lakh crore coming via bonds in the first half of that year, or 57.6% of the whole objective. The finance ministry said in March that the weekly bond sale will have a size between Rs. 31,000 crore and Rs. 39,000 crore between April and September.
Additionally, in the first quarter (Q1) of the fiscal year 2023–2024, the central government is anticipated to auction treasury notes (T-bills) of Rs. 4.16 lakh crore. Additionally, the auction of sovereign green bonds is anticipated to be announced in the second half of 2023–2024.
Every Friday, the RBI, which oversees the government's borrowing program, holds bond and Treasury Bill auctions. Ten states have issued long-term bonds this week with various maturity dates. As the nation's inflation situation improves and the central bank seems likely to relax its hardline attitude on rate rises, the yield on government securities has recently decreased.
India's consumer inflation in April decreased to 4.7%, an 18-month low, thanks to declining food costs. CPI inflation was 5.5% in the prior month. On June 12, the May inflation data is anticipated. According to experts, India's inflation would continue to decline in May and approach the RBI's tolerance limit.
To control the spiraling high inflation, the RBI increased the benchmark repo rate by 250 basis points to 6.5 percent since May of last year. In April of this year, it stressed that it would continue to carefully monitor the inflation situation but had temporarily paused these rises due to the situation's improvement. Around June 8, the RBI's monetary policy committee (MPC) will convene once again.

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