RBI to hold buyback auction of 3 G-Secs
The government will buy back securities worth ₹25,000 crore. Reserve Bank of India made the announcement on Friday. This is the third buyback this financial year. The auction will be on July 17 for bonds maturing in April 2026. Buybacks help manag...
By ET Bureau |
BCCL
The total notified amount was ₹51,000 crore, of which the RBI had accepted bids worth ₹49,600 crore across two auctions.
Mumbai The government has announced buyback of three government securities worth ₹25,000 crore, the Reserve Bank of India said on Friday.
This is the third buyback announcement in this financial year. The buyback auction of three government bonds-yielding 7.27%, 5.63% and 6.99%-all maturing in April 2026 will be held on July 17. Buybacks are a way for the government to pay off debt for next fiscal year to reduce its gross borrowing and manage fiscal deficit, according to bank treasury officials.
It also results in RBI infusing durable liquidity in the system. The previous two buyback auctions conducted in June had seen strong demand. The total notified amount was ₹51,000 crore, of which the RBI had accepted bids worth ₹49,600 crore across two auctions.
This is the third buyback announcement in this financial year. The buyback auction of three government bonds-yielding 7.27%, 5.63% and 6.99%-all maturing in April 2026 will be held on July 17. Buybacks are a way for the government to pay off debt for next fiscal year to reduce its gross borrowing and manage fiscal deficit, according to bank treasury officials.
It also results in RBI infusing durable liquidity in the system. The previous two buyback auctions conducted in June had seen strong demand. The total notified amount was ₹51,000 crore, of which the RBI had accepted bids worth ₹49,600 crore across two auctions.
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