RBI market operations: to sell Rs 12,000 crore govt bonds

RBI

On an assessment of current and evolving liquidity conditions, Reserve Bank has decided to conduct sale of government securities under Open Market Operations for an aggregate amount of Rs 12,000 crore on December 1 through multi-security auction using the multiple price method. Reserve Bank of India (RBI) on Wednesday said it would sell Rs 12,000 crore government bonds through Open Market Operations (OMO) to mop up liquidity from the system.

RBI would have option to accept bids for less than the aggregate amount of Rs 12,000 crore. The central bank would decide on the quantum of sales of individual securities, it said.As part of the OMOs, the RBI will sell government securities maturing in 2017 (bearing interest rate of 8.07 per cent), 2020 (7.80 per cent), 2022 (8.08 per cent) and 2027 (8.26 per cent).

Source:business today