The Reserve Bank of India on Thursday announced an open market operations (OMO) sale and purchase of government securities worth Rs 10,000 each. The decision has been taken after reviewing the current liquidity and market situation. The central bank has decided to bridge the liquidity gap through OMO sale and purchase after assessing the current financial conditions of the market.
The RBI will purchase Rs 10,000 crore worth 6.45 per cent bond 2029 and will sell four G-Secs of 2020 series aggregating Rs 10,000 crore. Jumping 4 basis points, the benchmark 10-year bond reached 6.75 per cent earlier in the day.
The OMO sale and purchase of government securities will be conducted on December 23 through RBI’s Core Banking Solution (E-Kuber). The participants can bid or submit offers in electronic format through this portal between 10.30 am and 12.00 noon on the day. RBI said in the press release that after the results are announced on the same day, the successful participants will get one day to ensure the availability of funds or securities.