RBI rejects bids

MUMBAI: The Reserve Bank of India (RBI) did not accept all the bids at its INR 150 billion ($2.24 billion) government bond sale on Friday, including for the benchmark 10-year debt, marking the second week in a row when it has rejected some of the bids. The RBI accepted only INR 49.4 billion worth of bids for its INR 70 billion sale of 2025 bonds, and accepted only INR 22.9 billion of the INR 30 billion worth of 2034 bonds being sold. The remaining three bonds were fully allocated. The RBI can choose not to accept all bids at the debt auctions through a process known as a ‘devolvement’, which leads underwriting dealers to buy up the shortfall in undersubscribed tenders at the determined cut-off yield.