RBI accepts bids worth Rs 7,287.6 cr in Rs 30,000 cr bond buyback auction

Mumbai: The Reserve Bank of India on Tuesday accepted bids worth Rs 7,287.56 crore in a government bond buyback auction, out of Rs 30,000 crore worth of securities that the Centre had offered to repurchase.

Bond market participants, such as banks, offered to sell bonds worth Rs 8631.91 crore back to the government at Tuesday’s auction, RBI data showed.

The RBI started conducting such buyback auctions on behalf of the government last month after a gap of six years. However, the government has bought back only a fraction of the total quantity of bonds it has offered to repurchase as the Centre and the RBI have not been comfortable with accepting bids from banks at very high prices, or low yields.


The cumulative aggregate amount of bonds that the government has offered to repurchase through five auctions since May 9 is Rs 2.3 lakh crore. Of that, the RBI has accepted bids worth a total of Rs 30,247.88 crore.