RBI to sell 10k crore bonds in August via OMO
DSIJ Intelligence / 22 Jul 2017
The Reserve Bank of india announced that it will be selling sovereign bonds on August 10, 2017 through open market operations, a liquidity management alternate.
The decision taken on the basis of the assessment of the current and evolving liquidity conditions, will see the Reserve Bank of India conducting sales of government securities for a cumulative amount of Rs 10,000 crore, as notified by the apex bank on July 21.
The RBI has conducted two open market operations in the month of July already, for Rs 10,000 crore each, respectively. While the monetary authority has also been withdrawing cash through daily operation in a bid to maintain neutral liquidity in the banking system which still has an excess fund worth Rs 3 lakh crore brimming in the system.
The benchmark bond had posted a yield of 6.45 per cent on July 21, lower than its closing yield on the previous day. While the bank loan growth has been just over 7 per cent, much below the average double-digit growth in the last few years.