RBI Issues Uniform Price Auction Method For Bonds

The Reserve Bank of India has said that the benchmark government securities (g-sec) of various tenor and floating rate bonds (FRBs) will be issued using the uniform price auction method.

"On a review of market conditions and market borrowing program of the government, it has been decided that benchmark securities of tenor 2-year, 3-year, 5-year, 10-year, 14-year tenor and Floating Rate Bonds (FRBs) will be, henceforth, issued using uniform price auction method. For other benchmark securities i.e. 30-year and 40-year, the auction will continue to be multiple price-based auction, as hitherto," the RBI said in a release.