RBI to buy back G-Secs worth Rs 40,ooo crore

BENGALURU:

RBI

will buy back Rs 40,000 crore ($4.8 billion) worth of securities, it said on Friday. The securities offered for buyback are

G-Secs

6.18% 2024, 9.15% 2024 and 6.89% 2025, RBI said in a statement.
“The choice of securities suggests this buyback is a

liquidity redistribution

exercise by govt as they have clear visibility on their shorter-term funds,” said Vivek Kumar, economist at

QuantEco Research

.

“One could construe this as a yield management exercise, too. However, RBI has alternate options with direct and indirect signalling potential,” he added. There is no notified amount for individual securities, RBI said.