RBI to buy back G-Secs worth Rs 40,000 crore

BENGALURU: RBI will buy back Rs 40,000 crore ($4.8 billion) worth of securities, it said on Friday. The securities offered for buyback are G-Secs 6.18% 2024, 9.15% 2024 and 6.89% 2025, RBI said in a statement.

“The choice of securities suggests that these buybacks are a redistribution of liquidity by the government as they have a clear view of their short-term funds,” said Vivek Kumar, economist at QuantEco Research.

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“You could also see this as an exercise in yield management. However, RBI has alternative options with direct and indirect signaling potential,” he added. There is no notified amount for individual securities, RBI said.