The Reserve Bank of India set the real yield at 1.44 per cent at the first auction of its new series of inflation-indexed 2023 government bonds on Tuesday, lower than the expected 1.7 per cent in a Reuters poll.
The Rs 1,000 crore auction was fully subscribed.
The debt will be indexed to the final wholesale price inflation with a four-month lag, meaning the auction will be extrapolated from January's final WPI of 7.31 per cent.
The auction marks India's first sale of inflation-linked bonds since a failed attempt in 1997. India plans to sell up to Rs 15,000 crore of the debt during the current fiscal year ending in March 2014.
Copyright: Thomson Reuters 2013
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