RBI Cancels 10-Year Green Bond Auction Amid Market Reluctance
| Aspect | Details |
|---|---|
| Event | RBI cancels auction of 10-year green bonds due to market reluctance to pay greenium. |
| Green Bonds Planned | Rs 12,000 crore in H1 FY24, split into two tranches of Rs 6,000 crore each. |
| Bid Yields | Bids ranged between 7% and 7.06%, above RBI's acceptable rate (benchmark yield at 6.99%). |
| Benchmark Bond Yield | Settled at 6.98% post-auction cancellation. |
| Currency | Rupee declined to a two-week low of 83.47 against the dollar due to month-end dollar demand. |
| RBI Intervention | Sold dollars to curb further depreciation. |
| Election Impact | Rupee volatility between 83.04 and 83.47 due to election results and market jitters. |
| Economic Indicators | S&P upgraded India's outlook; MSCI rebalancing brought $2.8 billion inflow. |
| Market Expert View | RBI may reattempt auction post-election results when market conditions stabilize. |