RBI identifying illiquid gilts for buyback

The Reserve Bank of India was in the process of identifying illiquid government bonds for buyback and issuing liquid gilts, Deputy Governor Shyamala Gopinath said today.

"There are only a few liquid gilts in the market. We will buyback the illiquid ones and issue liquid papers," he said on the sidelines of the 18th Forex Association of India conference.

The aim behind this buyback was to make the gilt yield curve more liquid, she said. However, she refused to give a time-frame by when the RBI is likely to identify ill-iquid gilts and start their buyback.