RBI to conduct govt bond buyback auction worth Rs 25,000 crore on Oct 10

The government has offered to repurchase Rs 25,000 crore worth of securities through a buyback auction, which will be conducted by the Reserve Bank of India on Thursday. The government has offered to buy back the 7.72 per cent 2025 bond maturing on May 25, the 5.22 per cent 2025 bond maturing on June 15, the 8.20 per cent 2025 bond maturing on September 24, the 5.15 per cent 2025 bond maturing on November 9, and the 7.59 per cent 2026 bond maturing on January 11.

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.