Tuesday, March 04, 2025 | 04:25 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

RBI converts less than a third of Rs 30K-crore bonds into long securities

Bond dealers said the market wanted the RBI to offer them higher coupon for the switch, as the source security is maturing just next month.

RBI
Premium

The market wanted to trade off immediate liquidity with a higher yield, but that would have pushed up the yields on the longer dated securities, which the RBI was perhaps not agreeable to.

Anup Roy Mumbai
The Reserve Bank did not offer the originally planned Rs 30,000 crore of securities for conversion into longer dated securities. It, however, accepted switching for only Rs 7,866.73 crore, the auction results showed.
 
After stating last week that it would be converting Rs 30,000 crore of securities maturing in June to longer dated securities, including Rs 4,000 crore into a 40-year security, the RBI offered only Rs 9,796.7 crore of securities in its Monday auction.
The RBI did not accept any offer for a conversion of Rs 13,000 crore to the 10-year security. It accepted Rs 5,736.7 crore for conversion to

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in