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Tag: OMO

Indian bond yields rise in absence of OMO announcement
Business, Highlights, India

Indian bond yields rise in absence of OMO announcement

India’s benchmark bond yield rose on Friday to a three-week high as a lack of an open market operation announcement disappointed investors ahead of a debt sale and variable rate reverse repo auction later in the day. 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. “It has been decided to restore normal liquidity management operations in a phased manner,” the RBI said. Markets read the release as an indication that the RBI was looking to roll back the massive cash surplus in the banking system despite its reiteration that it will ensure availability of ample liquidity. “The market is confused about what the RBI is trying to do. A lot...