In a previous auction on May 9, the RBI accepted bids worth Rs 10,512.99 crore out of Rs 40,000 crore worth of bonds offered for buyback.
The RBI repurchased only Rs 2,069 crore of government bonds from a notified amount of Rs 60,000 crore as banks were unwilling to sell the securities at a loss.
The central bank’s second attempt to infuse liquidity saw limited success as the securities offered at the auction were purchased by banks at higher prices. The government had offered to buy back three securities: two maturing in six months and one in eight months.
In a previous auction on May 9, the RBI accepted bids worth Rs 10,512.99 crore out of Rs 40,000 crore worth of bonds offered for buyback.
RBI accepted bids only at Financial Benchmarks India Private Limited (FBIL) levels. FBIL administers financial benchmarks, including interest rate benchmarks, which serve as reference rates for financial products like loans, bonds, and derivatives. FBIL is regulated by the RBI.
The securities offered were 6.18% GS 2024, 9.15% GS 2024, and 6.89% GS 2025, maturing on November 4, November 14, and January 16, respectively. The central bank received 24 offers worth Rs 26,877.161 crore for 6.18% GS securities but accepted only six offers worth Rs 552.999 crore at a cut-off price of Rs 99.61. It received 12 offers worth Rs 6,479.791 crore for 9.15% GS and accepted two offers worth Rs 1,513 crore at a cut-off price of Rs 100.98.