RBI Settles for Half in Bond Switch Sale
The Economic Times [
Pune
]
Kolkata
,
Bhubaneshwar
Jul 22, 2025 | Page No.: 12 | Position: Middle Right | Source: Bureau | Sq Cm: 139 | AVE: 52220 | PR Value: 261100
Record : 1 / 1
View Text
Merge JPEG
JPEG
Tiff
Word Doc
PDF
1
All Text
YIELD TROUBLE Accepts about z17 274 crore worth of bonds or 54 of notified amount RBI Settles for Half in Bond Switch Sale Our Bureau Mumbai The Reserve Bank of India RBI on Monday accepted about 217 274 crore in the bond switch auction or 54 of the noti- fied amount of r32 000 crore be- cause the yields demanded by market participants may have be- en higher than the central bank s comfort level traders said In a bond switch the govern- ment replaces bonds maturing in the near term with long- term auction depends on interest rate bonds Monday s exercise is ex- view and what opportunities pected to reduce the redemption banks see in terms of replenis- pressure in the next three fiscal hing their bond portfolios The years while also helping the go- participation has been lower vernment to manage the fiscal compared to the previous auc- economists said tions because the majority view Securities offered in the Mon- is that a cut in interest rate is mo- day s switch auction--fourth re or less a done deal said Raje- such auction in the current fi- ev Pawar head of treasury at scal--are of papers maturing in Ujjivan Small Finance Bank FY27 FY28 and FY29 and are be- The centre had budgeted swit- ing replaced with bonds matu- ches worth r2 5 lakh crore for ring after FY32 a year where the FY26 60 more than the previo- redemption pressure is relative- us year Of the total budgeted ly less than previous years RBI switches little over 269 000 crore data shows has already been done so far Se- Of the nine securities on offer parately the RBI has also bought the RBI did not accept any bids back bonds maturing in the next for four securities few fiscal years for 269 525 crores Participation in the switch since the start of this fiscal IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII