Govt cancels securities auction scheduled for Feb 11

NEW DELHI - India cancelled auctions of government securities to be held on Feb. 11, a government statement said on Monday, following a sharp rise in bond yields after the announcement of a record borrowing programme.

India's government had planned to auction 220 billion worth of bonds on Feb. 11.

"On review of the Government of India's cash position, it has been decided, in consultation with Reserve Bank of India, to cancel auction of all the securities scheduled to be held on February 11, 2022," a government statement issued late on Monday said.

India's 10-year bond yields spiked to a more than two and half-year high following the announcement of the record borrowing plan of 14.95 trillion rupees for 2022/23 on Feb. 1. The market was expecting a 12 trillion to 13 trillion rupee programme for 2022/23.

The government announced the larger than expected programme to push India's growth to 8%-8.5% in the coming fiscal year.

The government statement made no mention of a new date for the auction.