New Delhi, Jan 5 (UNI): The Reserve Bank of India on Monday carried out an open market operation (OMO) purchase of government securities, signaling its continued focus on ensuring adequate liquidity in the financial system.
Under the operation, the central bank purchased government bonds with an aggregate notified amount of Rs 50,000 crore, covering a wide range of maturities.
The OMO purchase saw strong participation across securities maturing between 2029 and 2054, reflecting healthy demand from market participants.
The largest absorption was witnessed in the 7.40 per cent government security maturing in 2035, where the RBI accepted securities worth Rs 18,897 Cr. This was followed by the 7.41 per cent government security maturing in 2036, with an accepted amount of Rs 12,500 Cr.
Other securities included in the operation were the 7.73 per cent government security maturing in 2034, with acceptance of Rs 7,949 Cr, and the 7.95 per cent government security maturing in 2032, where Rs 4,063 Cr was absorbed.
The RBI also purchased Rs 3,499 Cr. of the 7.10 per cent government security maturing in 2029 and Rs 3,092 crore of the long-tenor 7.09 per cent government security maturing in 2054. No amount was accepted for the 8.30 per cent government security maturing in 2040.
The cut-off yields for the accepted securities ranged from 6.02 per cent for the 2029 maturity to 7.27 per cent for the 2054 maturity, broadly aligning with prevailing market conditions. Corresponding cut-off prices varied across maturities, indicating calibrated absorption by the central bank across the yield curve.
Market participants view the OMO purchase as a clear signal of the RBI’s intent to maintain comfortable liquidity conditions amid evolving macroeconomic dynamics. By injecting durable liquidity through bond purchases, the central bank aims to support smooth transmission of monetary policy, stabilise bond markets and ensure sufficient funds are available to meet credit demand.
The operation is also expected to help ease pressure on government bond yields and support orderly market conditions, particularly at a time when liquidity needs tend to rise due to seasonal factors and increased credit requirements. Detailed results of the OMO purchase are expected to be released shortly.
Overall, the latest OMO underscores the RBI’s proactive approach in managing liquidity and reinforcing financial stability, while remaining aligned with its broader objective of supporting economic growth.
