BackRBI buys back Rs42.97 bn of bonds
RBI buys back Rs42.97 bn of bonds
Premium
Mumbai: the Reserve Bank of India said on Thursday it had bought back bonds worth Rs42.97 billion through an auction under its open market operation where it received bids totalling Rs119.27 billion.
It bought back Rs30.71 billion of the 6.07% bonds maturing in 2014 at a cut-off price of Rs95.79, which corresponds to a yield of 7.14%.
The median forecast in a Reuters poll was for a cut-off price of Rs95.76 or a yield of 7.14% for the 2014 bond.
The central bank bought back Rs10.16 billion of the 7.49% bonds maturing in 2017 at a cut-off price of Rs100.24, which corresponds to a yield of 7.44%.
The median forecast in a Reuters poll was for a cut-off price of Rs99.93 or a yield of 7.50% for the 2017 bond.
It bought back Rs2.10 billion of the 7.4% bonds maturing in 2035 at a cut-off price of Rs91.44, which corresponds to a yield of 8.20%.
The median forecast in a Reuters poll was for a cut-off price of Rs91.55 or a yield of 8.19% for the 2035 bond.
The buyback auction was held one day ahead of an auction to sell Rs110 billion of government bonds.
The central bank has been holding buyback auctions since mid-February as it seeks to avoid the heavy government borrowing from hurting the secondary government bond market.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
