Bonds, representative image.
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Mumbai: India will auction a new 10-year benchmark bond on Friday, replacing the existing paper that has seen a sell-off in the past week.
The weekly auction will include raising Rs 30 lakh crore through a new security maturing in 2035, the auction calendar released on Monday showed.
The new bond will replace the 6.79 per cent 2034 bond as the benchmark government security, which has an outstanding amount of 1,840 billion rupees.
The 2034 bond saw a fall in prices and a consequent spike in yields last week, with traders listing factors ranging from soaring geopolitical tensions following the attack in Kashmir to investors selling their positions ahead of the issue of the new benchmark.
The May 2 auction will also include raising Rs 6 lakh crore via 6.64 per cent 2027 bond.