The government accepted ₹12,604 crore worth of bids in the government securities buyback auction on Tuesday, falling short of the notified amount of ₹20,000 crore. According to latest reports from NDTV, investors offered securities worth ₹16,959.07 crore in total, indicating strong market participation despite the partial acceptance. The buyback was conducted as part of the government's strategy to retire short-dated securities and smooth the redemption profile while managing liquidity in the bond market.
The Reserve Bank of India led the buyback activity, accepting the largest quantum across multiple securities. As reported by NDTV, the RBI purchased securities worth ₹8,960.69 crore under the 7.33 per cent GS 2026, against offers totalling ₹9,160.69 crore. The central bank also bought back ₹2,400.387 crore of the 8.15 per cent GS 2026, nearly the entire amount offered of ₹2,450 crore. Additionally, the RBI accepted ₹893 crore under the 5.74 per cent GS 2026 against bids worth ₹3,618 crore, and purchased ₹350 crore of the 8.24 per cent GS 2027 against offers amounting to ₹1,730 crore.
The buyback was conducted at predetermined cut-off prices across different securities. According to NDTV, the cut-off prices were set at ₹100.48 for the 7.33 per cent GS 2026, ₹100.10 for the 5.74 per cent GS 2026, ₹100.86 for the 8.15 per cent GS 2026, and ₹101.40 for the 8.24 per cent GS 2027. The corresponding weighted average prices stood at ₹100.47, ₹100.10, ₹100.86, and ₹101.39 respectively. The partial acceptance rate reflects market dynamics and the government's strategic approach to managing its debt portfolio while maintaining liquidity in the bond market.
