RBI OMO
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 marke...
15 Jan, 2024, 02.05 PM ISTIndia bond yields flat as traders shrug off RBI policy The RBI refrained from any major announcements - unlike in August and October - while Governor Shaktikanta Das said liquidity situations in the last two months did not warrant open market sale of bonds.
08 Dec, 2023, 11.33 AM ISTWe 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 hawkis...
07 Dec, 2023, 01.36 PM IST- ADVERTISEMENT
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 t...
25 Nov, 2023, 09.26 AM ISTIndian benchmark yield above 7.35% as US peers move upwards U.S. yields rose after an auction showed weak demand and following data that indicated new-home sales accelerated in September, affirming market expectations of prolonged higher-for-longer interest rates.
26 Oct, 2023, 10.29 AM ISTNavigating the Storm: Analysing the impact of surging US bond yields on global FX markets The bedrock of the global financial system, US 10-year bond yields have shot up to 16-year highs. In Germany, the benchmark yield recently touched its highest since the 2011 eurozone debt crisis. Even in Japan, where official rates are still below 0...
24 Oct, 2023, 11.14 AM ISTRBI 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.
10 Oct, 2023, 03.31 PM ISTRBI 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 su...
09 Oct, 2023, 12.32 PM ISTAligning 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...
07 Oct, 2023, 09.27 AM ISTIndia 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 bankin...
06 Oct, 2023, 01.38 PM ISTLiquidity 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 ...
06 Oct, 2023, 01.07 PM ISTRBI 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.
04 Oct, 2023, 05.54 AM ISTLiquidity 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 Schem...
11 Jun, 2023, 11.55 PM ISTBond yields hit 7-month low as market cheers RBI’s rate pause Yield on the most liquid 10-year sovereign bond settled at 7.21 per cent as against 7.28 per cent at previous close. Bond prices and yields move inversely. A decline of one basis point on the 10-year bond yield corresponds to a rise in prices of rou...
06 Apr, 2023, 05.32 PM ISTRBI offers comfort to bond market unnerved by G-SAP withdrawal The benchmark bonds rose as much as five basis points during Friday's trading to 6.32 percent. It closed at 6.31 per cent versus 6.27 per cent Thursday.
09 Oct, 2021, 08.23 AM ISTProfit 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 bench...
07 Sep, 2021, 08.09 PM ISTRBI to conduct OMO of Rs 25,000 cr G-secs on Aug 26 In a statement on Wednesday, the central bank said it will purchase five government securities aggregating to Rs 25,000 crore through a multi-security auction using the multiple price method on August 26.
19 Aug, 2021, 12.46 AM ISTLiquidity surplus expanding but OMOs must continue – RBI stuck in the middle Unless the RBI steps in to purchase the 2031 paper under open market operations, treasury officials see yield on the benchmark security rising even further in the coming days.
30 Jul, 2021, 02.46 PM ISTMarket 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.
15 Jul, 2021, 12.55 PM ISTRBI to purchase G-Secs worth Rs 35,000 crore under G-SAP 1.0 on May 20 The first purchase of Rs 25,000 crore last month received an enthusiastic response from the market, RBI Governor Shaktikanta Das said.
05 May, 2021, 01.47 PM IST