Bond yields slump on RBI’s OMO plan to infuse liquidity

By: | Published: December 3, 2015 11:28 AM

Sovereign bond yields tumbled on Thursday after the Reserve Bank of India announced bond purchases of up to 100 billion rupees ($1.50 billion) to infuse liquidity into the banking system.

rupee bondSovereign bond yields tumbled on Thursday after the Reserve Bank of India announced bond purchases of up to 100 billion rupees (.50 billion) to infuse liquidity into the banking system.(Reuters)

Sovereign bond yields tumbled on Thursday after the Reserve Bank of India announced bond purchases of up to 100 billion rupees ($1.50 billion) to infuse liquidity into the banking system.

The RBI will conduct the bond purchases via open market operations (OMO) on Dec. 7, it said in a release after market hours on Wednesday.

On Friday, the RBI will also conduct 28-day variable term repo for 250 billion rupees to inject funds into the banking system.

At 0338 GMT, the benchmark 10-year bond yield was down 5 basis points at 7.69 percent.

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