1. RBI announces OMO sale worth Rs 10,000 crore

RBI announces OMO sale worth Rs 10,000 crore

The RBI is selling five different securities — 7.28% GS 2019, 8.79% GS 2021, 7.16% GS 2023, 8.33% GS 2026 and 8.60% GS 2028. This is the fourth OMO sale announced by the RBI this financial year.

By: | Mumbai | Updated: August 12, 2017 4:41 AM
rbi, reserve bank of india, omo, omo sale, rbi open market operations An OMO sale is conducted to suck excess liquidity from the system while an OMO purchase is done to infuse liquidity. (Reuters)

The Reserve Bank of India (RBI) on Friday announced sale of government securities worth Rs 10,000 crore via open market operations (OMO) which will be conducted on August 29. An OMO sale is conducted to suck excess liquidity from the system while an OMO purchase is done to infuse liquidity. The RBI is selling five different securities — 7.28% GS 2019, 8.79% GS 2021, 7.16% GS 2023, 8.33% GS 2026 and 8.60% GS 2028. This is the fourth OMO sale announced by the RBI this financial year. The first one was announced on June 30.

The OMO sale announcement is in line with what market participants have been expecting. Bond market experts earlier pointed out since the RBI had commenced an OMO sale, it would likely to conduct at least Rs 40,000 crore sale of securities to make the liquidity reduction effective.

  1. No Comments.

Go to Top