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BENGALURU: RBI will buy back Rs 40,000 crore ($4.eight billion) worth of securities, it stated on Friday. The securities provided for buyback are G-Secs 6.18% 2024, 9.15% 2024 and 6.89% 2025, RBI stated in an announcement.
“The choice of securities suggests this buyback is a liquidity redistribution exercise by govt as they have clear visibility on their shorter-term funds,” stated Vivek Kumar, economist at QuantEco Research.
“One could construe this as a yield management exercise, too. However, RBI has alternate options with direct and indirect signalling potential,” he added. There isn’t any notified quantity for particular person securities, RBI stated.
“The choice of securities suggests this buyback is a liquidity redistribution exercise by govt as they have clear visibility on their shorter-term funds,” stated Vivek Kumar, economist at QuantEco Research.
“One could construe this as a yield management exercise, too. However, RBI has alternate options with direct and indirect signalling potential,” he added. There isn’t any notified quantity for particular person securities, RBI stated.
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