RBI injects Rs 50,000 crore, rejects 2040 bond bids

Mumbai: The central bank rejected all bids for the 8.30%, 2040 paper, while accepting the full ₹50,000 crore notified amount in other securities in its fourth open market operation (OMO) since the last monetary policy meeting in December 2025. Banks participating in the auction likely bid higher than the paper's market price, which the Reserve Bank of India (RBI) declined, traders said. The RBI received total bids worth ₹1.32 lakh crore.

"In all papers that were illiquid, bank books would have been in profit. So, they (banks) likely sold them and booked these profits. These securities were sold at a 15-20 paise discount to market prices," said Gopal Tripathi, head of treasury, Jana Small Finance Bank.

The 7.40%, 2035 paper saw the most demand, with the RBI buying ₹18,897 crore of the security. It bought ₹3,092 crore from the 7.09%, 2054 paper, RBI data showed.


Two more OMOs for ₹50,000 crore each are scheduled to take place on January 12 and 22, respectively, along with a USD/INR buy/sell swap auction of $10 billion on January 13.