Govt to sell Rs 2,000 cr bonds under MSS
To fight inflation through sucking out excess liquidity, the govt will borrow Rs 2,000 crore from the market.
By PTI |
NEW DELHI: To fight inflation through sucking out excess liquidity, the Government will borrow Rs 2,000 crore from the market by way of its two-year dated securities under Market Stabilisation Scheme (MSS).
The government would sell Rs 2,000 crore worth of bonds with coupon rate of 6.65 per cent on Wednesday, an official release said here.
The 6.65 Government Stock 2009 would be sold through price based auction using multiple price method, which will be conducted by the Reserve Bank.
After 18 months, RBI had resumed MSS and sucked out an additional Rs 6,000 crore through the auction of 6.65 per cent two year bonds on March 6.
Money raised under MSS is impounded with the central bank instead of being passed on to the government for spending.
RBI had attributed resumption in MSS to capital inflows and the paramount importance given to liquidity management in containing inflation.
The government would sell Rs 2,000 crore worth of bonds with coupon rate of 6.65 per cent on Wednesday, an official release said here.
The 6.65 Government Stock 2009 would be sold through price based auction using multiple price method, which will be conducted by the Reserve Bank.
After 18 months, RBI had resumed MSS and sucked out an additional Rs 6,000 crore through the auction of 6.65 per cent two year bonds on March 6.
Money raised under MSS is impounded with the central bank instead of being passed on to the government for spending.
RBI had attributed resumption in MSS to capital inflows and the paramount importance given to liquidity management in containing inflation.
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