The government has repurchased bonds worth 10,590 cr. and all of the accepted ones are the 6.07% that is maturing in May 2014.
I had mentioned the repayment obligations in an earlier post:
Now, what has changed is that the obligation for May 2014 is down to 28,500 cr. This still means that in April+May, the government will need to repay Rs. 69,000 cr. of debt.
The government will not have the money; it will usually issue fresh debt, either as bonds, T-Bills (short term paper) or Ways and Means Advances from RBI. They will not default.
However this can mean that a higher issue of paper is required in order to meet these obligations, and yields will be under upward pressure accordingly.
Why did the government not buy back any of the other bonds? Those asks may have been at a higher rate than the government wanted to pay. (But I really don’t know)