Mumbai: India’s central bank said on Thursday it had bought back bonds worth Rs22.31 billion through an auction under its open market operation where it received bids totalling Rs62.21 billion.
It bought back Rs11.60 billion of the 7.38% bonds maturing in 2015 at a cut-off price of Rs100.33, which corresponds to a yield of 7.3110%.
The median forecast in a Reuters poll was for a cut-off price of Rs100.57 or a yield of 7.2610% for the 2015 bond.
The central bank bought back Rs6.26 billion of the 8.24% bonds maturing in 2018 at a cut-off price of Rs104.67, which corresponds to a yield of 7.4933%.
The median forecast in a Reuters poll was for a cut-off price of Rs104.62 or a yield of 7.5010% for the 2018 bond.
It bought back Rs4.45 billion of the 7.95% bonds maturing in 2032 at a cut-off price of Rs98.05, which corresponds to a yield of 8.1387%.
The median forecast in a Reuters poll was for a cut-off price of Rs97.98 or a yield of 8.1455% for the 2032 bond.
The buyback auction was held one day ahead of an auction to sell Rs120 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.