Moping Up

The fresh issues could set off more regular longer term borrowing as the state looks to maintain low inflation and interest rates. rn

rnThe 10 year issue is also in line with the Central Banks decision on Wednesday to gradually absorb excess liquidity from the financial system through ldblquote a longer-term absorption under its active open market operations window.
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rnCentral Bank also left key interest rates unchanged on account of the high liquidity in the financial system at present. rn

rnThe decision came after its monthly policy meeting on Wednesday evening. rn

rnIndustry analysts expect Employees Provident Fund to subscribe to a large part of Thursdays issue as it has done on previous occasions. rn

rnThe issue will carry an annual coupon rate of 8.5 per cent, but market analysts expect primary dealers and other parties to bid at marginally higher levels.rn

rnThe issue, dealers say was on the cards, with the Central Bank saying it would issue a 10 year bond when interest rates