With this auction, the Centre has completed 66.05 per cent of its gross borrowings of Rs 1,16,861 crore with the net at 61.57 per cent or Rs 77,183.45 crore.

"It (auction results) is a clear indication that that there is enough liquidity in the system. With the Millennium Bond offering by the State Bank of India (to the extent of $2-3 billion) being firmed up, and a further cut expected in the repos rates, bond prices are set for a handsome rally", a dealer with a primary dealership said. Good liquidity is also evident from the fact that the average outstanding amount under repos has stood at about Rs 10,500 crore in the month of September.

Bond prices were also buoyant after the Reserve Bank cut the repos rate for the third successive day by another 25 basis points to 9.25 per cent. Repos rates have moved down from 10 per cent on Tuesday. The central bank accepted 15 bids for Rs 2,140 at its one-day repos and 11 bids for Rs 1,730 at its five-day repos - both at 9.25 per cent. Call rates held under 10 per cent levels today. Opening the day at 9.25-9.50 per cent, call rates eased during the day with not much demand for funds on the eve of Reporting Friday to 8.50-8.75 per cent. Trades were brisk on the National Stock Exchange's (NSE) wholesale debt segment. Deals worth Rs 1,417.45 crore were seen. Trades worth Rs 420 crore were seen in the 11.40 per cent 2008 with those in the 12.50 per cent 2004 at Rs 160 crore.