OMO SALES
There's no real reason and hurry for RBI to cut rates: Neeraj Gambhir, Axis Bank
Now with the higher capital charge, the cost of funding from banks will go up and probably to some extent, there will be a volume impact as well. NBFCs were anyway borrowing from the bond market - at least the AAA- and AA-rated NBFCs. The bond market has seen the exit of a large borrower, which has created space for more NBFCs and for investors to diversify their exposure.
We expect first rate cut from August onwards; RBI likely to remain hawkish tomorrow: Aurodeep Nandi, Nomura
“I really do not think that the governor would give a dovish bias to any of this. He would like to remain hawkish. He would like to say that I am still looking at tight liquidity. And to a great extent, it would be continuing with the kind of hawkishness that we have seen in the past couple of meetings despite a pause in rates.”
RBI could defer OMO sales with liquidity deficit at over 4-year highs
"Pressure to carry out OMO sales has definitely come down significantly because liquidity conditions have stayed tight and more significantly it is the fall in core liquidity surplus that has played a prominent role in keeping liquidity conditions tight," said Abhishek Upadhyay, senior economist at ICICI Securities Primary Dealership.
Surging yields drive Indian corporate bond sales to 5-yr low in Oct
Companies had raised around 285.5 billion rupees ($3.43 billion) until Oct. 29, the lowest since September 2018, and well below the 729.5 billion rupees in the previous month, data from Prime Database showed.
RBI may conduct Rs 500 billion worth bond sales: Treasury officials
The Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said the central bank may have to consider open market operations (OMO) to manage liquidity in line with the stance of monetary policy.
RBI adds new weapon as Indian markets gear up for billions in index inflows
The Reserve Bank of India may consider selling bonds to sponge off surplus cash, Governor Shaktikanta Das said Friday, while keeping the policy rate unchanged. The surprise announcement soured the mood in the debt market, sending benchmark yields surging by the most in over a year
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Aligning market realities with policy goals
The RBI, since the beginning of the tightening cycle in May 2022, has been talking about focusing on the withdrawal of accommodation. Nearly 17 months later, the situation is hardly what the RBI wanted: By September-end, core liquidity was ₹2.8 lakh crore and that is set to rise to ₹3.3 lakh crore with the total withdrawal of the Incremental Cash Reserve Ratio
India 10-year bond yield sees biggest rise in 14 months on RBI’s OMO sales plan
“The timing and quantum of such operations will depend on the evolving liquidity conditions,” Das said. In the last policy meeting, RBI imposed an incremental cash reserve ratio (I-CRR) of 10%, which impounded about Rs 1.1 lakh crore from the banking system. The I-CRR was reviewed on September 8 and the central bank decided to discontinue the same in a phased manner, ending on October 7.
Liquidity will come back but RBI will keep it in deficit for the time being: Jayesh Mehta
The Reserve Bank of India (RBI) is expected to keep overnight rates more towards the Marginal Standing Facility (MSS) rather than the repo rate. The liquidity situation is expected to improve, although there may be some reduction due to the festive season. The RBI is likely to maintain a deficit for the time being and monitor inflation. The market was surprised by the announcement of OMO sales and the recreation of a 4% target.
RBI may take OMO route for g-securities sales
The jury is out on how the Reserve Bank of India (RBI) plans to solve this problem. Some analysts believe the RBI may dust off a toolkit unused since 2017 - of organising standalone large-scale open market sales of sovereign debt.
Liquidity absorption toolkit comes to fore as RBI stresses on 'withdrawal'
While the RBI has preferred Variable Rate Reverse Repo (VRRR) auctions to mop up excess liquidity, its toolkit includes options such as sales of government bonds, an increase in the Cash Reserve Ratio (CRR), the use of the Market Stabilisation Scheme (MSS) and foreign exchange swaps.
Profit sales from gilt HTM books at OMOs not helping RBI as levels get skewed: BofA's Mehta
The RBI’s focus on the bond yield curve had strengthened even before the pandemic as elevated yields at certain points of the yield curve implied a high cost of borrowing for several sectors of the economy as a wide host of credit products are benchmarked to government bonds.
Market avoiding large bets ahead of RBI's OMO announcement
Bond traders expect the central bank to make the announcement this week or latest by Monday.
Now we know where exactly RBI wants the bond yields to stay
The number of people below the poverty line has increased from 6 crore to 13.4 crore due to Covid (Pew Research ). The middle class has shrunk by 3.2 crore due to the pandemic (Pew Research).
RBI to conduct Open Market Operations next week
The decision was taken after a review of the current liquidity and financial conditions, the RBI said in a statement while announcing the special OMO.
RBI to conduct simultaneous sale-purchase of govt securities next week
On March 10, RBI will purchase four government securities of different maturity dates aggregating to Rs 20,000 crore and sell three securities aggregating to Rs 15,000 using the multiple price auction method.
View: Why the gulf between RBI and bond market is widening?
Why are bond investors deaf to the chief of the central bank when he asks them to be co-operative and not 'combative' and that investors should 'trust' the central bank to walk the talk?
RBI to conduct simultaneous sale-purchase of govt securities next month
On a review of current liquidity and financial conditions, the central bank has decided to conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 15,000 crore each on March 4, 2021, RBI said in a release.
RBI to conduct simultaneous sale-purchase of govt securities next week
Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing G-Sec of longer maturities and selling equal amount of G-Sec of shorter maturities.
Indian bond yields rise in absence of OMO announcement
The Reserve Bank of India last week said it would conduct a variable rate reverse repo auction for 2 trillion rupees ($27 billion) on Jan. 15 on review of the evolving liquidity and financial conditions.
RBI to conduct simultaneous sale-purchase of govt securities next week
Simultaneous purchase and sale of G-sec under OMOs, popularly known as Operation Twist, involves purchasing the securities of longer maturities and selling an equal value of securities of shorter maturities.
RBI to conduct simultaneous purchase and sale of govt securities next week
The decision was taken after a review of the current liquidity and financial conditions, the RBI said in a statement.
RBI to conduct simultaneous purchase, sale of govt securities next week
Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing G-Sec of longer maturities and selling equal amount of G-Sec of shorter maturities.
RBI to conduct special OMOs on November 19
RBI will conduct simultaneous purchase and sale of government securities under OMO for an aggregate amount of Rs 10,000 crores each.
RBI to conduct special OMOs of simultaneous purchase and sale of G-secs
The total amount of OMOs conducted in the second half of 2020-21 has been of the order of Rs 66,305 crore so far, and the response has been positive in both primary and secondary market auctions.
RBI announces special OMO for purchase, sale of Rs 10,000 cr G-Secs on Sept 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.
RBI announces special OMO for sale, purchase of govt securities worth Rs 10,000 cr
The RBI had announced, on August 25, simultaneous purchase and sale of government securities under OMO for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each.
RBI announces special OMO of Rs 20,000 crore
The central bank added that it will buy government securities including 6.18 per cent, 8.24 per cent, 5.79 per cent and 7.95 per cent maturing on November 4, 2024, February 15, 2027, May 11, 2030 and August 28, 2032, respectively.
RBI announces OMO of simultaneous purchase and sale of govt securities
The apex bank said it will buy government securities including 6.79 per cent, 7.26 per cent, 6.68 per cent and 6.57 per cent maturing on May 15, 2027, January 14, 2029, September 17, 2031 and December 5, 2033.
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