RBI Partially Cancels Debt Auction to Curb Spike in Bond Yields

The Reserve Bank of India partially cancelled a shorter-duration government security auction for the first time in a year to curb rising bond yields.

The central bank accepted bids worth only ₹45.06 billion ($471.12 million) for the 6.20% 2029 bond, representing just over 40% of the planned ₹110 billion borrowing.

The seven-year bond was sold at a slightly higher than expected yield, with the three-year security trading at 6.4566% after climbing 25 basis points over four weeks.