The RBI received 45 applications and accepted all of them. Dealers said the insurance companies and public sector banks were the main applicants.

This is the second government issue in two days. On Thursday, at the price auction of an eight-year paper, the RBI set off the cut-off price of the paper at 11.74 per cent. Of the Rs 2,500 crore notified amount, the RBI received 119 bids for Rs 3,335 crore. The RBI accepted 38 bids for Rs 1,305 crore with the rest of the Rs 1,195 crore devolving on the primary dealers. Dealers said PDs got underwriting commission of 41 paise (0.41 rupee) per Rs 100.

The issue had been partially underwritten and a number of primary dealers, who had bid for commissions higher than the cut-off level, had their bidsrejected, dealers said.

The RBI on Friday also hiked the cut-off yield of the 91-day treasury bills by four basis point to 9.31 per cent. However, it kept the yields of the 14-day treasury bills unchanged from the previous level of 8.63 per cent.

"This has been done to realign secondary market yields where the RBI signalled that yields are moving up when the it pegged the eight year paper at 11.74 per cent," dealers said.

At the 91-day t-bills auction, the central bank received 13 competitive bids worth Rs 118.50 crore and one non-competitive bid worth Rs 25 crore. It accepted six bids worth Rs 73 crore for a notified amount of Rs 100 crore. The devolvement on the primary dealers was to the tune of Rs 27 crore.

At the 14-day t-bills auction, the central bank received 17 bids worth Rs 329.50 crore and one non-competitive bid worth Rs 200 crore out of which the central bank accepted 14 bids worth Rs 100 crore.