Mumbai: The Reserve Bank of India (RBI) on Thursday accepted bids worth Rs 50,000 crore in the first tranche of its open market operation (OMO) sale of government securities, as it stepped up efforts to absorb surplus liquidity from the banking system.
The RBI accepted Rs 7,005 crore of the 7.59 per cent government securities maturing in 2029 at a cut-off yield of 6.6007 per cent and Rs 7,255 crore of the 6.79 per cent GS 2029 at 6.7023 per cent, according to a release.
It accepted Rs 1,005 crore of the 7.61 per cent GS 2030 at 6.8191 per cent and Rs 12,645 crore of the 5.77 per cent GS 2030 at 6.8589 per cent. The central bank further accepted Rs 3,250 crore of the 6.68 per cent GS 2031 at 6.9080 per cent, while the largest acceptance of Rs 18,840 crore was for the 8.28 per cent GS 2032 at a cut-off yield of 7.0090 per cent.
OMO sales are used by the central bank to absorb durable surplus rupee liquidity from the financial system. Under such operations, the RBI sells government securities from its portfolio, with funds paid by market participants moving out of the banking system.
Of the six securities sold on Thursday, the RBI accepted the highest amount of Rs 18,840 crore in the 8.28 per cent Government Security 2032, followed by Rs 12,645 crore in the 5.77 per cent Government Security 2030.
The cut-off yields ranged from 6.6007 per cent to 7.0090 per cent, with the 8.28 per cent GS 2032 carrying the highest cut-off yield of 7.0090 per cent.
