Both the papers were put on the RBI sale window on Friday. According to money market sources, the 10-year paper offering an implicit yield of 11.74 per cent was sold within 15 minutes of opening the sale window. ``The market lapped up the long-term paper as the yield of the paper is much higher than the existing yield in the secondary market,'' said Kotak Capital Markets' fixed income group head Anant Narayan.

With the Rs 5,000 crore private placement, the Centre has completed 41 per cent of its borrowing for the current fiscal. So far, the Centre has raised Rs 34,500crore out of the gross borrowing target of Rs 83,571 crore. Out of the total mop-up, Rs 2,500 crore has been raised through the auction of 364-day t-bills.

According to money market sources, the 10-year paper was selling at a premium of 15 paise at Rs 101.55/56 in the secondary market on Friday. ``The traders having comfortable position were seen taking new position in the paper,'' money market dealers said.

There will not be much of an impact on the liquidity condition as Rs 2,000 crore is expected to come into the system on June 5 through the redemption of 13.70 per cent 1999 paper which will offset the Rs 2,000 crore outflow.

According to dealers, there were no takers for the 11.98 per cent 2004 paper on Friday as the price fixed for the paper is much higher than the price quoted in the secondary market. The paper is currently quoted at Rs 102.68 in the secondary market offering an yield of 11.28 per cent, four basis points higher compared with the yield fixed by RBI at 11.24 per cent.

The Centreon May 20 privately placed the reissued 12.60 per cent 2018 paper worth Rs 4,000 crore at a price of Rs 101.30. The paper was first issued on tap last year and mopped up Rs 1,131.88 crore. It was reissued and privately placed last year.