Comments
Banks on Thursday offered to sell three Government Securities (G-Sec) aggregating ₹63,012 crore to the Reserve Bank of India (RBI) against the notified amount of ₹10,000 crore at the first special Open Market Operation (OMO) -- simultaneous purchase and sale auction of G-Secs -- of FY22.
Of the three G-Secs the RBI intended to purchase under OMO Purchase and Sale (Operation Twist), it accepted offers aggregating ₹10,000 crore only for the benchmark 2030 G-Sec (coupon rate: 5.85 per cent).
The central bank jad rejected all the offers it received for the 2026 G-Sec (6.97 per cent) and 2028 G-Sec (7.17 per cent).
RBI set the cut-off price for the purchase of the 2030 G-Sec at ₹99.10 (previous closing price: ₹99.07), with the cut-off yield coming in at 5.9742 per cent (5.9783 per cent).
The central bank received bids aggregating ₹36,471 crore at the sale of two 182 day Treasury Bills under the Operation Twist against the notified amount of ₹10,000 crore. It accepted bids for the notified amount.
Under Operation Twist, RBI simultaneously buys long-term G-Secs and sells Treasury Bills to lower longer-term interest rates.
G-Sec prices moved in a narrow band in the secondary market as auction of four G-Secs aggregating ₹32,000 crore is scheduled on May 7.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.