As part of the Operation Twist, the Reserve Bank of India (RBI) on Thursday announced the simultaneous purchase and sale of long-tenor and short-tenor government securities respectively worth Rs 10,000 crore each, which will take place on Monday. The open market operations (OMOs) will be the second in the series as was expected by market participants who anticipate at least Rs 50,000 crore of OMOs.
“On review of the current liquidity and market situation and an assessment of the evolving financial conditions, the Reserve Bank has decided to conduct one more simultaneous purchase and sale of government securities under OMO for Rs 10,000 crore each on December 30, 2019,” it said in a statement.
In the latest round of Operation Twist, the central bank is again targeting the 10-year benchmark bonds or the 6.45% yielding notes maturing in 2029 by deciding to purchase Rs 10,000 crore of the papers thereby reducing their supply in the market.
At the same time, the RBI is looking to sell short-dated securities maturing in 2020 worth Rs 10,000 crore.
As on Thursday, the yield on the benchmark bonds are down by about 22 basis points from the peak seen in December.
Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
Source: Financial Express