It accepted 70 bids for Rs 1,505 crore, with Rs 1,560 crore devolving on the apex bank and remaining Rs 935 crore on the primary dealers.Post-auction, the Centre has mopped up Rs 33,683 crore out of its gross borrowing programme of Rs 1,17,00 crore for fiscal 2000-01.

The devolvement on the RBI suggested the lack of appetite among players for medium and long term bonds. Most dealers expected the cut-off price in the range of Rs 106.30-106.80.

"The fact that the amount received as bids was lower than the notified amount clearly shows lack of interest for bonds of similar or higher tenor," the treasurer with a private bank said.

The central bank fixed a higher underwriting commission of 74 paise per Rs 100 for primary dealers bidding at the auction. The central bank did not pay any commission to primary dealers at the yield-based auction of the 11-year bond on May 29 and took about 98 per cent devlovement for the bond.

The 11.90 per cent bond in the secondary market traded at Rs 106.70 as compared to the previous close of Rs 106.73. Dealers expect the bond price to take a cue from the lower cut-off price and fall further in the coming days.

Bond prices ended lower, with call money rates remaining firm in the money market. Call money rates ended higher at 9-9.25 per cent as against Wednesday's close of 8.75-9 per cent.

Dealers said refinance from the RBI at bank rate has almost been exhausted. As on June 7, banks and primary dealers availed refinance of Rs 13,771 crore at the bank rate, while the central bank infused Rs 1,285 crore at 9 per cent through reverse repo auction.