India has no plans to cancel bond auctions despite spike in yields
Updated : May 18, 2018 05:05 PM IST
The RBI failed to sell all the debt it offered to bidders at the last four auctions in a row, which has given rise to concerns in the government that aims to borrow a total 6.05 trillion rupees ($89.87 billion) in the current fiscal year that started in April.
Finance ministry officials have asked the central bank to re-issue older bonds that are widely held by market participants, and shorter tenure bonds to ensure auctions go through smoothly
Indian bonds weakened to multi-year lows as global crude oil prices surged and local inflation data came in higher than expected.