RBI’s G-Sec Buyback Results and Market Dynamics

The Reserve Bank of India recently conducted a buyback of government securities (G-Secs), receiving offers totaling ₹17,384.552 crore, but accepting only ₹10,513 crore, despite the notified amount being ₹40,000 crore. Market analysts speculate that banks may have offered G-Secs at higher prices, leading to rejection of offers out of sync with secondary market prices.

Government’s Fiscal Position and Buyback Strategy

The government’s robust financial position, indicated by significant April 2024 GST collections amounting to ₹1.92 lakh crore, along with expected RBI dividend declarations, likely influenced its decision to undertake the G-Sec buyback.

Detailed Auction Results

  • 6.18% GS 2024 Auction: Out of 47 offers totaling ₹28,464.954 crore, RBI accepted 10 offers amounting to ₹437.053 crore at a cut-off price of ₹99.59.
  • 9.15% GS 2024 Auction: Among 20 offers totaling ₹17,384.552 crore, RBI accepted four offers aggregating ₹10,075.940 crore at a cut-off price of ₹101.02.
  • 2025 Paper Auction: The central bank rejected all 23 offers amounting to ₹7,484.473 crore (face value).

The government’s buyback strategy reflects its liquidity position and strategic fiscal management amidst market dynamics.

Piyush Shukla

Recent Posts

Former India All-Rounder Vijay Shankar Retires from Domestic Cricket and IPL

Former India and Tamil Nadu all rounder Vijay Shankar has announced his retirement from domestic…

8 hours ago

RBI’s Highest-Ever ₹2.87 Lakh Crore Surplus Transfer Strengthens Government Finances

The Reserve Bank of India (RBI) has announced the record ₹2.87 lakh crore surplus transfer…

8 hours ago

Government Plans High-Powered Demography Mission to Tackle Illegal Immigration and Strengthen Border Security

Indian central government is preparing to launch the major national initiative called the High-Powered Demography…

8 hours ago

Sandeep Bakhshi to Continue as ICICI Bank CEO Until 2028 After RBI Approval

The Reserve Bank of India (RBI) has approved the reappointment of Mr. Sandeep Bakhshi as…

8 hours ago

Kevin Warsh Sworn In as Federal Reserve Chair, Replacing Jerome Powell

Kevin Warsh has officially sworn in as the Chair of the Federal Reserve Board of…

8 hours ago

India and Cyprus Sign Strategic Partnership Deal Covering Defence, Trade, and Cybersecurity

India and Cyprus have upgraded the bilateral relationship to a Strategic Partnership, as Cyprus President…

9 hours ago