RBI announces special OMO for purchase, sale of Rs 10,000 cr G-Secs on Sept 10

Mumbai: The Reserve Bank of India (RBI) said on Monday that it will simultaneously purchase and sell government securities under Open Market Operation (OMO) for an aggregate amount of Rs 10,000 crore on September 10.

This is the first tranche of such purchase and sale to the tune of Rs 20,000 crore, under the relaunched “Operation Twist” wherein the central bank will conduct such simultaneous auctions of sale of long-dated securities, and purchase of those maturing in the near term, in an attempt to cool off debt market yields.


On August 31, the central bank announced measures to foster orderly market conditions, under which it said it will conduct additional special OMOs involving the simultaneous purchase and sale of government securities for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each.

RBI said the auctions would be conducted on September 10 and 17, and added it remains committed to conduct further such operations as warranted by the market conditions.