RBI’s Double Bond Offer: Rs 32,000 Crore on the Table, More if You Want It

The Reserve Bank of India (RBI) has announced the reissue of two government securities totaling Rs 32,000 crore. This move is part of the central bank’s regular efforts to manage liquidity and meet the government’s borrowing needs. In addition to the scheduled amount, the RBI has also kept the option open to accept an extra Rs 2,000 crore, depending on market demand and response.

 

The two securities being reissued are the 7.10% Government Security (GS) maturing in 2029 and the 7.30% GS maturing in 2053. These bonds are popular among institutional investors and are expected to attract strong bids from banks, insurance companies, and mutual funds.

 

Key Highlights:

This reissue is expected to see robust participation as investors look for safe and stable returns amid global economic uncertainties. The RBI’s flexibility to accept additional bids also signals its intent to respond to market appetite and maintain smooth functioning in the government securities market.

 

Source: Business Standard