RBI buys bonds worth ₹10K cr, to conduct 2 more OMOs of ₹30K cr

Business Standard|March 21, 2020

RBI buys bonds worth ₹10K cr, to conduct 2 more OMOs of ₹30K cr
The central bank received bids worth ₹45,049 crore for Friday’s open market operation
ANUP ROY

The Reserve Bank of India (RBI) will buy bonds worth ₹30,000 crore fromthe secondary market, after buying ₹10,000-crore bonds on Friday, to infuse durable liquidity into the system so that the market continues to function normally amid a coronavirus-induced slowdown.

The central bank received bids worth ₹45,049 crore for Friday’s open market operation (OMO), through which the RBI bought ₹10,000 crore of bonds. The response showed that the market needed liquidity support from the RBI.

“The response to the open market purchase auction conducted on March 20 has been positive,” the RBI said in a statement.

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March 21, 2020