RBI buys Rs 7,912 cr of G-Secs

As part of its programme to infuse liquidity, the Reserve Bank of India bought Rs 7,912 crore of government securities through open market operations (OMOs) against a target of Rs 8,000 crore. Three securities were on offer for the OMOs conducted.

The central bank bought the 8.33 per cent bonds maturing in 2026 at Rs 100.72, yielding 8.24 per cent. On the 8.19 per cent bonds maturing in 2020, the RBI set a cut-off price of Rs 100.04, yielding 8.18 per cent.

On the 8.24 per cent bonds maturing in 2018, the central bank set a cut-off price of Rs 100.34, yielding 8.15 per cent, according to the data RBI put on the Web site

Further, the RBI bought Rs 2,131 crore of the 2018 bonds, Rs 3, 341 crore of the 2020 bonds and Rs 2,440 crore of the 2026 bonds.

The RBI Deputy Governor Subir Gokarn had recently said the current high borrowing by banks is the result of large cash balance with the government and the advance tax-payout. “To the extent that the pressure persists we will keep doing the OMOs,” he said.

Since the beginning of this month, RBI had done three OMOs — two of Rs 12,000 crore each and the last of Rs 8,000 crore.

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