RBI Advances Second Tranche Of G-sec Buying Under OMOs To March 26

Money & Banking

PTI Mumbai | Updated on March 23, 2020 Published on March 23, 2020

The Reserve Bank of India (RBI) on Monday said that it has advanced the second tranche of purchase of government securities worth ₹15,000 crore of under open market operations (OMOs) to March 26. The OMO purchase auction was earlier scheduled for March 30.

“On review of current liquidity and financial conditions, the RBI has decided to advance the second tranche of purchase of government securities under OMOs for ₹15,000 crore to March 26, 2020,” the RBI said in a release.

The four government bonds to be bought by the RBI in the auction include 8.08 per cent-2022; 7.68 per cent-2023; 7.27 per cent-2026 and 7.17per cent-2028, the release said. These bonds will be purchased through a multi-security auction using the multiple price method.

The first tranche of OMO purchase auction worth ₹15,000 crore will be conducted on March 24.

Last week, the RBI said it would conduct two OMO purchase auctions worth Rs 30,000 crore in two tranches in March to provide liquidity to the market. The RBI had said that with COVID-19-related dislocations, stress in certain financial market segments is still severe and financial conditions remain tight. “Our endeavour is to ensure that all markets segments function normally with adequate liquidity and turnover,” it had said.

Published on March 23, 2020

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