On the 364-day treasury bills front, Rs 275 crore worth of t-bills devolved on the central bank. The yield was pegged at 10.35 per cent.

The central bank pegged the price of the 12.32 per cent 2011 paper at Rs 102.18--slightly higher than the market price. The implicit yield of the paper works out to 11.96 per cent. It received 120 bids worth Rs 2,277 crore out of which it accepted 97 bids worth Rs 1,730 crore. Devolvement on primary dealers was to the tune of 13.5 per cent.

For the 12.40 per cent 2013 paper, the central bank pegged the price of the paper at Rs 101.68 in line with the market price. The implicit yield of thepaper works out to 12.14 per cent. It received 148 bids worth Rs 3,869 crore out of which 111 bids worth Rs 3,000 crore were accepted.

According to market sources, 12-year paper devolved as the bids offered by primary dealers were unreasonably high.

The RBI announced the auction the two reissued papers--12.32 per cent 2011 worth Rs 2,000 crore and 12.40 per cent 2013 for Rs 3,000 crore--last week. The Centre has raised Rs 8,000 crore through the private placement of the 12.40 per cent 2013 paper in the current fiscal. It had raised Rs 2,000 crore through the 12.32 per cent 2011 paper in fiscal 1999.

Bond prices ruled steady on Wednesday. The intra-day price movement was only to the extent of 2 to 4 paise. Bond prices held firm as the rupee bounced back to gain 17 paise against the dollar.

With the Rs 5000-crore twin auction, the Centre has completed over 46 per cent of its borrowing programme for the current fiscal. The Centre's borrowing for the current fiscal has gone up to Rs 39,500 crore against agross borrowing target of Rs 83,571 crore. Out of the total mop-up, Rs 3,500 crore has been raised through the auction of 364-day treasury bills.

In the current fiscal, the Centre has raised Rs 8,000 crore through the private placement of the 12.40 per cent 2013 paper. Last year, through the private placement route, the Centre had raised Rs 2,000 crore through the 12.32 per cent 2011 paper.