Expect RBI to do 2-3 more Open Market Operations (OMOs) by March: Nomura
Reuters: Feb 13 2013, 11:28 IST
* Nomura says RBI to conduct two or three more Operation Market Operartions between now and the end of March, expecting banking system liquidity to worsen.
* Cash will tighten as advance tax outflows due by mid-March and currency demand could lead to an additional 200 billion rupees being withdrawn from the banking system between now and March, strategist Vivek Raajpal wrote in a note on Wednesday.
* India's 10-year bond yield is expected to move toward the lower side of the 7.75-7.95 percent range by mid-March.
* "This should comfort the bond market, which should also reduce the paid hedging flows in belly of OIS (3yr-5yr tenor)," it says.
* Late on Tuesday the RBI said it will buy up to 100 billion rupees ($1.9 billion) of bonds on Feb. 15 through open market operations using the multiple price method.
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