Mumbai, June 6 -- The Reserve Bank of India (RBI) accepted Rs 23,855.99 crore worth of bids in its first government bond buyback of the fiscal year, just a day ahead of the bi-monthly monetary policy review. While the notified amount was Rs 25,000 crore, total bids received stood at Rs 27,256.02 crore.

The market response was tepid compared to similar buybacks conducted earlier in January. This subdued participation is being attributed to cautious sentiment ahead of the Reserve Bank of India (RBI)'s monetary policy outcome on Friday.

This buyback covered five securities maturing between 2026 and 2027. The largest acceptance came from the 7.27% GS 2026, where Rs 11,365.78 crore worth of bids were taken in. The 6.97% GS 2026 followed with...