RBI gets double the bids in Rs 40,000 crore open market operation auction

The Reserve Financial institution of India’s open market operation (OMO) buy on Thursday noticed sturdy demand, with banks and first sellers providing bonds greater than double the notified quantity to money in on greater costs, treasury heads stated. Bids supplied for this OMO have been price ₹81,015 crore, versus the notified quantity of ₹40,000 crore. The longer tenured bonds have been auctioned at a reduction from the market costs, whereas costs of the shorter tenured bonds have been virtually at market ranges, consultants stated.

The shorter tenured bond-7.37% GS 2028-was auctioned at a value of 104.5, just like its buying and selling value of 104.1. The longer tenure bond-7.23% GS 2039-was auctioned at a value of 105.7, whereas it was buying and selling at a value of 103.8, CCIL and RBI information confirmed. The longer tenured bond was additionally the paper that noticed most demand within the OMO public sale.

“There’s a large distinction within the curve of shorter finish bonds, versus longer tenured bonds. For the shortest bond, the cut-off was near market costs. Sellers have been snug providing the longer tenured bonds at a reduction from the market value as a result of bond yields have softened, they usually should have made a revenue,” stated Rajeev Pawar, head of treasury at Ujjivan Small Finance Financial institution.

Bond yields have eased beneath the psychologically vital 6.40% mark, and closed at 6.37% on Thursday, three foundation level beneath its earlier shut. The rally in bond yields is pushed by RBIs liquidity help, and the 6.30% mark would come sooner reasonably than later, a bond seller with a non-public sector financial institution stated. The RBI will conduct two extra OMOs of ₹20,000 every on April 22 and April 29.

“The RBI’s OMO auctions haven’t solely cushioned yields however have additionally balanced the liquidity affect of weekly authorities safety auctions, leading to minimal web money outflows from the system. This tactical help has helped 10-year G-Sec yields dip beneath the psychological 6.40% mark,” stated Venkatakrishnan Srinivasan, founding father of Rockfort Fincap, a debt advisory agency.

The RBI auctioned three authorities securities price ₹30,000 crore on Thursday, which additionally included a 30-year inexperienced bond.

Individually, RBI’s 43-day variable fee repo (VRR) public sale noticed muted response, with bids of simply ₹25,731 crore, versus the notified quantity of ₹1.5 lakh crore. That is due to a cushty surplus in system liquidity, consultants stated. Day by day common liquidity as of April 16 has been at a surplus of ₹1.7 lakh crore, after being in a deep deficit for the primary three months of 2025, RBI information confirmed.