MARKET EYE-Indian bond redemptions could spark RBI debt buys-dealers

Wed Feb 12, 2014 2:28pm IST

* Upcoming redemptions of government bonds are sparking
speculation the central bank could replenish the debt through
bond purchases either in secondary markets or open market
operations.
* The first major redemption will consist of 51.33 billion
rupees ($824.3 million) of 5.32 percent 2014 government bonds
 due to mature on Saturday.
* The 5.32 percent bonds are held entirely by the central bank,
which bought the debt 10 years ago directly from the government
through a private placement.
* That redemption therefore would not add to liquidity in
markets, but the RBI could opt to buy debt to replenish its
holdings, according to dealers.
* Meanwhile, the redemption of 157.87 billion rupees of 6.72
percent 2014 bonds is due on Feb. 24, of which a
significant portion is again held by RBI.
($1 = 62.2700 rupees)

 (subhadip.sircar@thomsonreuters.com/subhadip.sircar.thomsonreut
ers.com@reuters.net)
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage