He drivenwhat is the center debt managerwill hold the auction in which banks and other bond market participants will be able to buy back five government securities, the central bank said on Friday. One of the titles expires this month while another expires in July. Three of the titles will expire in November.
The bonds are as follows: the 2025 7.72% bond due May 25, 2025, the 2025 5.22% bond due June 15, 2025, the 2025 8.20% bond due on September 24, 2025, the 2025 bond at 5.15% due on November 9, 2025 and the 2026 bond at 7.59% due on January 11, 2026.
The RBI started conducting such buyback auctions on behalf of the government on May 9, after a gap of six years. Since then, it has held four rounds of such auctions: May 16, May 21, May 30 and June 6.
However, the buyback auctions failed to generate strong market participation, with the RBI and the government accepting only a small portion of the bonds that the Center offered to buy back. This was probably due to discomfort with the price levels that the banks had offered to sell the bonds to the government.
Bond buyback operations by the government result in immediate infusion of funds into the banking system as the Center repays banks ahead of the actual maturity dates of outstanding bonds. Buybacks are often used as a tool to smooth the government’s future. debt payment obligations. The government has witnessed healthy advance tax collection in September, which likely increased its cash balances and allowed it to retire debt before maturity. The government’s advance tax collection rose 22.61% to ₹4.36 lakh crore in the first half of the current financial year. (April-September 15), indicating strong corporate performance and a robust economy, official data released last month showed.
This includes an advance corporate tax of ₹3.31 lakh crore and an advance personal tax of ₹1.04 lakh crore. The anticipated tax collection in the corresponding period last year amounted to ₹3.55 lakh crore.
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