The cut-off yield of the 11-year paper is pegged at 11.65 per cent-in line with the market expectation. In the secondary market, the 11-year paper is currently quoting at Rs 103.82.

With the completion of the 11-year private placement issue, the Centre will complete 85 per cent of its gross budgeted borrowing for the current fiscal. Of the gross borrowing of Rs 84,014 crore for the current fiscal, the Centre has completed raising Rs 71,630 crore.

According to money market dealers, the market was expecting a private placement issue during the week owing to tight liquidity in the system. "The private placement issue will not have much impact on the liquidity condition existing in the system," dealers said. In the government securities market, the long-term gilt prices firmed up by 2-3 paise after the announcement of the issue. The 11.99 per cent 2009 paper, which was trading at Rs 102.43/44 in the early hours of trade, firmed up to Rs 102.47 towards the day's close.

The 12.60 per cent 2018 paper firmed up to Rs 104.33 towards the day's close as against the morning level of Rs 104.28/29. According to money market dealers, no inflows are expected to come into the system during the fortnight and call rates are expected to rule above 10 per cent during this period. "As short term money is ruling tight, most primary dealers have taken refinance from the central bank," said a dealer from a primary dealership outfit.

The RBI on October 7 auctioned two dated securities for a notified amount of Rs 5000 crore. The central bank pegged the yield of the eight year paper at 11.35 per cent while the 19 year paper was pegged at 12.04 per cent.

The 11.90 per cent 2007 paper was oversubscribed by Rs 1,272 crore and 12.6 per cent 2018 paper received Rs 1,455 crore more. The central bank fixed the cut-off price of 2007 paper at Rs 102.71 and Rs 104.05 for 2018 paper.