RBI to conduct second round of Operation Twist on Monday
Earlier this week, the central bank had conducted similar open market operations.
By PTI | Updated:
BCCL
The Reserve Bank of India on Thursday announced simultaneous purchase and sale of government securities through special open market operations (OMOs) for Rs 10,000 crore each on December 30 following a review of liquidity situation.
Earlier this week, the central bank had conducted a similar OMO and purchased securities worth Rs 10,000 crore and sold worth Rs 6,825 crore.
"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.
The results of the auction will also be announced on December 29, the RBI said while announcing the special OMO.
The Reserve Bank of India will conduct a simultaneous sale and purchase of bonds, it said on Thursday, in a move seen by market participants as an attempt to bring longer-term yields lower. It is the first time RBI would be conducting a special OMO of this kind, similar to the 'Operation Twist' carried out in the US near the start of the decade.
The RBI further said it reserves the right to accept or reject any or all the bids or offers either wholly or partially without assigning any reasons.
Earlier this week, the central bank had conducted a similar OMO and purchased securities worth Rs 10,000 crore and sold worth Rs 6,825 crore.
"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.
The results of the auction will also be announced on December 29, the RBI said while announcing the special OMO.
The RBI further said it reserves the right to accept or reject any or all the bids or offers either wholly or partially without assigning any reasons.
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