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Changes in G-Sec Auction Methodology
July 8 , 2021
1200 days
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- RBI has decided that benchmark securities of 2-year tenor, 3-year tenor, 5-year tenor, 10-year tenor & 14-year tenor and Floating Rate Bonds will be issued using uniform price auction method.
- However, for benchmark securities of 30-year and 40-year, auction will continue to be multiple price-based auction.
- The Government Security is a tradable instrument.
- These are issued by Central Government or State Governments.
- It acknowledges Government’s debt obligation.
- G-Secs are of two types.
- Short Term - They are usually called treasury bills.
- They have original maturities of less than one year.
- It is issued in three tenors viz., 91-day, 182-day and 364-day.
- Long Term - They are usually called Government bonds or dated securities.
- They have original maturity of one year and more.
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