MUMBAI: The Reserve Bank of India will prioritize improving liquidity in debt markets, including by issuing longer-dated bonds and conducting more frequent buybacks, according to an annual report out on Thursday.
Other measures to deepen trading will include debt switches, through which the RBI exchanges bonds, reducing the number of maturities so that trading can increase in fewer bonds, and reviewing guidelines on shorting bonds.
"The Reserve Bank plans to articulate a comprehensive debt management strategy with sound international practice," the central bank said in its 2013/14 annual report.
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