Government Rs. Bonds worth Rs 40 thousand crore will be bought back, RBI informed

The Center will repurchase securities: The central government will soon repurchase the rupee. Government securities worth Rs 40 thousand crores are being bought back. The government securities being bought back include 6.18% GS 2024, 9.15% GS 2024 and 6.89% GS 2025, with maturities of November 4, November 14 and January 16, respectively.

The Reserve Bank of India said the government has allocated Rs. Plan to buy back government securities worth Rs 40 thousand crores. In which the amount has not been released for each securities. These securities will be auctioned using the multiple price method.

When will the buyback happen?

The auction will commence on May 9, 2024 (Thursday) from 10.30 am to 11.30 am in electronic format on the Reserve Bank of India Core Banking Solution (e-Kuber) system. The results of the auction will be released on the same day and settlement will take place on May 10.

Short term gold bond yields will fall

All the three securities selected for buyback are scheduled to mature in six to nine months. Therefore, due to buyback, short term government bond yields have decreased. This has also reduced the cost of borrowing for companies. The government has taken this step to repay the outstanding debt before the maturity of its bonds.