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)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Earnings Season

REUTERS SHOWCASE

Monsoon Revives

Monsoon Revives

Monsoon revival keeps rain above average   Full Article 

Tackling Food Prices

Tackling Food Prices

India to free up extra 10 million tonne wheat in open market  Full Article 

Just Not Enough

Just Not Enough

Amazon's smartphone fails to kindle a "Fire" among reviewers.  Full Article 

Struggling Economies

Struggling Economies

Asian economies to struggle on weak export demand - Reuters poll  Full Article 

Mining Roadblock

Mining Roadblock

Coal India's plans for 20 mines hit by land, environment delays  Full Article 

Power Jolt

Power Jolt

UAE's TAQA pulls out of India power plant deal with Jaiprakash  Full Article 

Factory Sector

Factory Sector

China July HSBC flash PMI at 18-month high of 52.0   Full Article 

Currency Reserves

Currency Reserves

Sri Lankan, Indian central banks agree scope for government debt buys.  Full Article 

Reuters India Mobile

Reuters India Mobile

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