The Centre’s move to repurchase short-term government bonds, worth Rs 40,000 crore, is anticipated to lower yields and improve liquidity conditions, according to market experts. The repurchase, scheduled for Thursday, targets securities maturing within 6-9 months. This decision, last seen in March 2018, aims to stabilize banking system liquidity amidst fluctuations caused by increased government spending and anticipation of a post-election slowdown. Market participants anticipate reduced yields on short-term bonds and a positive impact on liquidity, given the ongoing deficit of Rs 78,481 crore in the banking system.