Government bonds oversubscribed, FPIs bid for $1 billion

Government debt securities saw robust response from foreign investors, attracting bids worth over USD 1 billion as against USD 854 million on offer.

The online auction was conducted on NSE's e-bid platform from 1530 hours to 1730 hours after the market closed.

Foreign portfolio investors (FPIs) bid for investment limits in government debt securities worth Rs 7,116 crore (USD 1.1 billion) as against Rs 5,481 crore (USD 854 million) on offer, the exchange data showed.

With respect to corporate debt securities, FPIs put in bids worth Rs 5,898 crore (USD 919.13 million) higher than Rs 3,360 crore (USD 523.61 crore) on offer.

The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased.

A mock bidding session was conducted on Friday to check the system's performance in this regard.

Till August 10, total investment in government debt reached Rs 1,82,219 crore -- 97.08 per cent of total permitted limit of Rs 1,87,700 crore -- while the same in corporate bond stood at Rs 2,40,963 crore (98.62 per cent of the total permitted limit of Rs 2,44,323 crore).

Consequently, the exchange had decided to conduct an auction for the allocation of unutilised debt limits