* 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
* 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)