The market liquidity was estimated to be in surplus of about ₹2.49 lakh crore on Thursday.
In a strategic maneuver to bolster market liquidity, the Reserve Bank of India has infused a significant fifty thousand crore rupees into the banking sector. As businesses prepare for advance tax and GST payments later this month, this liquidity boost comes at a crucial time.
India’s benchmark 10-year bond yield remained flat at 6.68% Friday, helped by the injection of liquidity.
The central bank last week made secondary market government security purchases to inject ₹57,210 crore into the market to contain bond yields amid the West Asia War.
The OMO on Friday was part of the two auctions of ₹50,000 crore each announced by the central bank last week. In the calendar year so far, the RBI has infused ₹3.50 lakh crore through OMO operations.
On Friday, it received bids worth ₹1.08 lakh crore for the OMO. It purchased the 6.45% government security 2029 for infusing ₹13,006 crore, the 7.95% GS 2032 for ₹2,908 crore, the 6.79% GS 2034 for ₹4,496 crore, the 6.64% stock 2035 for ₹8,350 crore, the 7.41% security 2036 for ₹14,491 crore, the 7.62% GS 2039 for ₹1,749 crore and the 7.06% stock 2046 for ₹5,000 crore, RBI said.