MUMBAI: There were not many takers for
RBI’s move on Monday to switch
gilts
having shorter residual maturity with the ones with medium and longer tenors.
Compared to the Rs 30,000 crore that was on offer, gilts only worth about Rs 9,200 crore were offered and about Rs 7,550 crore, that’s about 25% of the total amount on offer, was accepted by the RBI for switch, the central bank’s data showed.
Bond market players also pointed out that with the RBI offering gilts maturing on June 9, that is within less than a month from the date of switch, it meant the exercise was actually a
government borrowing
by another name.
On Monday, the government, through the RBI had offered to take back gilts maturing on June 9 and at the same time offered the holders gilts worth Rs 26,000 crore, equally divided between the ones maturing in 2024 and 2030 and another Rs 4,000-crore worth of gilts maturing in 2060.
In the two earlier switches in late 2019, the RBI had offered to take back gilts maturing over several years and not only during the same year.
RBI’s database showed that on June 9, gilts worth about Rs 52,868 crore is up for maturity.
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