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Time of India
6 days ago
- Business
- Time of India
Bond boost ahead: RBI to reissue Rs 27,000 crore in securities, 2029 and 2054 maturities part of Centre's borrowing plan
In a move aimed at managing the Centre's market borrowings, the Reserve Bank of India (RBI) on Monday announced the reissue of government securities worth Rs 27,000 crore in two separate tranches. The auction is scheduled for June 20. According to a notification from the Finance Ministry, the RBI will reissue Rs 15,000 crore of the 6.75 per cent Government Security (GS) maturing in 2029, and Rs 12,000 crore of the 7.09 per cent GS maturing in 2054, ANI reported. In addition, the Centre has retained the option to accept up to Rs 2,000 crore in oversubscriptions across both securities. A reissue allows the RBI to sell additional units of an existing bond instead of launching a new one, helping maintain liquidity in the bond market. The proceeds from this auction will be part of the government's planned market borrowings. The RBI will conduct the auction via its E-Kuber system. Non-competitive bids will be accepted from 10:30 am to 11:00 am, followed by competitive bids from 10:30 am to 11:30 am. Results will be announced the same day on the RBI's website. Payment by successful bidders is due on June 23, the designated date of reissue. The interest on the bonds will be paid semi-annually, calculated from either the date of original issuance or the last coupon date. Both securities will be redeemed at face value on maturity. Earlier in June, the RBI had also reissued two dated government securities worth Rs 32,000 crore, comprising Rs 16,000 crore each of the 6.92 per cent GS maturing in November 2039 and the 6.90 per cent GS due in April 2065. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Gazette
09-06-2025
- Business
- India Gazette
RBI's rate cut likely to lower bond yields as govt announces Rs 26,000 cr G-Sec buyback
By Nikhil Dedha New Delhi [India], June 9 (ANI): Bond yields in India are expected to go down following the recent frontloaded rate cut by the Reserve Bank of India (RBI), says economists ANI spoke with. The economists noted that rate cut is likely to influence the market to adjust to a revised and more accommodative interest rate outlook, pushing dated government securities (G-sec) yields down further. Debopam Chaudhuri, Chief Economist at Piramal Group told ANI 'The frontloaded rate cut is likely to drive a further easing in dated G-sec yields as markets adjust to a revised interest rate trajectory. The RBI's shift to a neutral stance could be initially interpreted as a signal of a pause in the rate-cut cycle'. He further stated that 'these are likely to be short-term adjustments, and bond yields are expected to resume their downward trend once market volatility subsides'. However, in the near term, some upward pressure on yields may emerge as investors may look to book profits after the rally in bond prices. Moreover, the RBI's shift to a neutral policy stance may be initially read by markets as a pause in the rate-cut cycle, which could also cause some temporary volatility in yields. Additionally, the US Federal Reserve is also anticipated to lower its terminal interest rate to around 4 per cent, creating more room for the RBI to continue with its rate-cutting approach. Dipanwita Mazumdar, Economist specialist at Bank of Baroda told ANI 'India's long end yields especially the 10Y part of the curve has priced in the rate cut. Thus we expect it to be largely capped as the change in stance has hinted lesser scope for future monetary policy easing. Hence we do not expect much momentum. However, the short run part of the curve will be more susceptible to the liquidity support given by RBI especially through CRR cut. Thus we expect some prevalence of a steeper yield curve for India in the near term'. In a parallel move aimed at managing its debt portfolio and supporting the bond market, the Government of India has announced a buyback of dated securities worth Rs 26,000 crore (face value). The buyback will be conducted through an auction on June 12, 2025. It will include five securities maturing in 2026: 5.63 per cent GS 2026 (maturing on April 12), 8.33 per cent GS 2026 (July 9), 6.97 per cent GS 2026 (September 6), 5.74 per cent GS 2026 (November 15), and 8.15 per cent GS 2026 (November 24). There is no notified amount for individual securities within the Rs 26,000 crore ceiling. The auction will be held on RBI's E-Kuber system between 10:30 a.m. and 11:30 a.m., and the results will be declared the same day. Settlement will take place on June 13, 2025. With the rate cut and the government's buyback initiative, economists believe bond yields will continue their downward trend in the medium term, providing further support to market liquidity and helping lower borrowing costs for the government. (ANI)
Mint
09-06-2025
- Business
- Mint
RBI's rate cut bonanza, ₹26,000 crore G-Sec buyback likely to lower bond yields
Bond yields in India are expected to go down following the recent frontloaded rate cut by the Reserve Bank of India (RBI), says economists ANI spoke with. The economists noted that a rate cut is likely to influence the market to adjust to a revised and more accommodative interest rate outlook, pushing dated government securities (G-sec) yields down further. Debopam Chaudhuri, Chief Economist at Piramal Group told ANI "The frontloaded rate cut is likely to drive a further easing in dated G-sec yields as markets adjust to a revised interest rate trajectory. The RBI's shift to a neutral stance could be initially interpreted as a signal of a pause in the rate-cut cycle". He further stated that "these are likely to be short-term adjustments, and bond yields are expected to resume their downward trend once market volatility subsides". However, in the near term, some upward pressure on yields may emerge as investors may look to book profits after the rally in bond prices. Moreover, the RBI's shift to a neutral policy stance may be initially read by markets as a pause in the rate-cut cycle, which could also cause some temporary volatility in yields. Additionally, the US Federal Reserve is also anticipated to lower its terminal interest rate to around 4 per cent, creating more room for the RBI to continue with its rate-cutting approach. Dipanwita Mazumdar, Economist specialist at Bank of Baroda told ANI "India's long end yields especially the 10Y part of the curve has priced in the rate cut. Thus we expect it to be largely capped as the change in stance has hinted lesser scope for future monetary policy easing. Hence we do not expect much momentum. However, the short run part of the curve will be more susceptible to the liquidity support given by RBI especially through CRR cut. Thus we expect some prevalence of a steeper yield curve for India in the near term". In a parallel move aimed at managing its debt portfolio and supporting the bond market, the Government of India has announced a buyback of dated securities worth ₹ 26,000 crore (face value). The buyback will be conducted through an auction on June 12, 2025. It will include five securities maturing in 2026: 5.63 per cent GS 2026 (maturing on April 12), 8.33 per cent GS 2026 (July 9), 6.97 per cent GS 2026 (September 6), 5.74 per cent GS 2026 (November 15), and 8.15 per cent GS 2026 (November 24). There is no notified amount for individual securities within the ₹ 26,000 crore ceiling. The auction will be held on RBI's E-Kuber system between 10:30 a.m. and 11:30 a.m., and the results will be declared the same day. Settlement will take place on June 13, 2025.
Mint
09-06-2025
- Business
- Mint
RBI's rate cut bonanza, ₹26,000 crore G-Sec buyback likely to lower bond yields
Bond yields in India are expected to go down following the recent frontloaded rate cut by the Reserve Bank of India (RBI), says economists ANI spoke with. The economists noted that a rate cut is likely to influence the market to adjust to a revised and more accommodative interest rate outlook, pushing dated government securities (G-sec) yields down further. Debopam Chaudhuri, Chief Economist at Piramal Group told ANI "The frontloaded rate cut is likely to drive a further easing in dated G-sec yields as markets adjust to a revised interest rate trajectory. The RBI's shift to a neutral stance could be initially interpreted as a signal of a pause in the rate-cut cycle". He further stated that "these are likely to be short-term adjustments, and bond yields are expected to resume their downward trend once market volatility subsides". However, in the near term, some upward pressure on yields may emerge as investors may look to book profits after the rally in bond prices. Moreover, the RBI's shift to a neutral policy stance may be initially read by markets as a pause in the rate-cut cycle, which could also cause some temporary volatility in yields. Additionally, the US Federal Reserve is also anticipated to lower its terminal interest rate to around 4 per cent, creating more room for the RBI to continue with its rate-cutting approach. Dipanwita Mazumdar, Economist specialist at Bank of Baroda told ANI "India's long end yields especially the 10Y part of the curve has priced in the rate cut. Thus we expect it to be largely capped as the change in stance has hinted lesser scope for future monetary policy easing. Hence we do not expect much momentum. However, the short run part of the curve will be more susceptible to the liquidity support given by RBI especially through CRR cut. Thus we expect some prevalence of a steeper yield curve for India in the near term". In a parallel move aimed at managing its debt portfolio and supporting the bond market, the Government of India has announced a buyback of dated securities worth ₹ 26,000 crore (face value). The buyback will be conducted through an auction on June 12, 2025. It will include five securities maturing in 2026: 5.63 per cent GS 2026 (maturing on April 12), 8.33 per cent GS 2026 (July 9), 6.97 per cent GS 2026 (September 6), 5.74 per cent GS 2026 (November 15), and 8.15 per cent GS 2026 (November 24). There is no notified amount for individual securities within the ₹ 26,000 crore ceiling. The auction will be held on RBI's E-Kuber system between 10:30 a.m. and 11:30 a.m., and the results will be declared the same day. Settlement will take place on June 13, 2025. With the rate cut and the government's buyback initiative, economists believe bond yields will continue their downward trend in the medium term, providing further support to market liquidity and helping lower borrowing costs for the government.
India Gazette
26-05-2025
- Business
- India Gazette
RBI to Auction Rs19,000 Crore in Treasury Bills on May 28
ANI 26 May 2025, 13:38 GMT+10 New Delhi [India] May 26 (ANI): The Reserve Bank of India (RBI) has announced the latest auction of Government of India Treasury Bills (T-Bills) to raise Rs 19,000 crore. The Government uses these short-term debt instruments to manage its immediate funding and liquidity requirements, the central bank said in a press release on May 23. The auction will comprise three tenures: 91-days, 182-days, and 364-days T-Bills, with the total notified amount spread across these maturities. The auction is scheduled for May 28 with the settlement to take place the following day, on May 29. The RBI has stated that the auction will be price-based using multiple price method, allowing potential investors to bid competitively. RBI has advised that the bids for auction should be submitted electronically to its Core Banking Solution (E-Kuber) system. Results of the auction will be announced on the day of the auction. Payment by successful bidders will have to be made on May 29. This latest announcement follows the RBI's successful Government Securities (G-Sec) auction held on May 23 this year, where bonds with a total notified amount of Rs. 27,000 crore were fully subscribed in two tranches--underscoring strong investor appetite for Indian sovereign debt instruments. (ANI)
