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RBI data show central bank buys debt just as government sells it

RBI data show central bank buys debt just as government sells it

The Reserve Bank of India bought chunks of debt just after the government sold it, the latest data showed, further fueling talk that the central bank is supporting the nation’s fund-raising efforts.

The central bank reported 149.89 billion rupees ($2 billion) worth of sovereign debt purchases for April 16, just one day after bills with the same value were mopped up by a few bids at an auction, according to data released on Friday.

Traders have been speculating over the central bank’s role in bill auctions this month as a handful of bids lapped up sales and drove yields to the lowest in more than a decade. While the RBI hasn’t taken part in any government auctions, the latest data suggest that it could be buying short-term debt in the secondary market within hours of a sale

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