RBI buys back Rs 7,287 crore bonds against notified Rs 30,000 crore

The Reserve Bank of India (RBI) repurchased Rs 7,287 crore worth of government bonds on Thursday, against the notified amount of Rs 30,000 crore. The central bank received bids worth Rs 8,631 crore at the auction.

The government had offered to buy back the 7.35 per cent 2024 bond maturing on June 22, the 8.4 per cent 2024 bond maturing on July 28, the 6.18 per cent 2024 bond maturing on November 4, the FRB 2024 bond maturing on November 7, and the 9.15 per cent 2024 bond maturing on November 14.

The RBI has repurchased a total of Rs 24,979 crore worth of securities in four auctions, against a total notified amount of Rs 1.7 trillion.

By repurchasing its own outstanding bonds from the market before they mature, the government reduces its liabilities and strengthens its fiscal position. The process involves using government funds to buy back these bonds, which are then typically retired, decreasing the total outstanding debt. This strategy allows the government to improve its debt profile by repurchasing higher-cost or shorter-term bonds.