The three-year security is expected to mop up Rs 2,500 crore, the five-year Rs 2,000 crore and the 12-year another Rs 1,000 crore, a finance ministry release stated. The 12-year bond is making an appearance after a gap of few years.

Dealers said that the centre is likely to mop up the entire amount. "There is unlikely to be any devolvement on the RBI as there is ample liquidity in the system," a debt analyst with a leading brokerage house said. The government seems to have factored the response to the fixed-rate repo while announcing the auction of the three new stocks.

The RBI had mopped up Rs 5,567 crore in the past two days through the repo window. The amount will come back to the system just before July 1. The market expects the RBI to fixthe coupon of the three-year paper in the 11.42-11.45 per cent range, five-year at around 11.60-11.65 per cent and the 12-year at 12.2 per cent. Last week, the Reserve Bank mopped up Rs 5,031 crore through the sale of two "tap" stocks of ten-year and six-year maturity at a coupon of 12.10 per cent and 11.75 per cent. The July 1 auction will complete Rs 40,531 crore worth of the centre's borrowing in the current fiscal out of its net borrowing programme of Rs 48,000 crore.