MUMBAI (Reuters) – The Indian government bought back bonds maturing in 2024 from the Reserve Bank of India on Tuesday, while also issuing bonds maturing in 2032 worth a similar quantum, the central bank said on Wednesday.
“The transaction involved buying back a security maturing in FY2024/25 from the Reserve Bank and issuing fresh security for equivalent market value, to make the transaction cash neutral,” the RBI said in a press release.
The government bought back 6.18% bonds maturing in 2024 worth 226.10 billion rupees ($2.78 billion) at a price of 98.62 rupees while it issued 8.28% 2032 bonds worth 210.26 billion rupees to the RBI at 106.05 rupees, the release showed.
India is likely to undertake bond switch auctions with the RBI to meet its target for fiscal, traders had said on Tuesday.
Before this switch, New Delhi had switched bonds worth over 820 billion rupees this financial year, below its target of 1 trillion rupees. ($1 = 81.2680 Indian rupees)
(Reporting by Swati Bhat; Editing by Savio D’Souza)
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