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Economic Times
20-05-2025
- Business
- Economic Times
RBI accepts lower bond purchase amount in first FY26 OMO auction
"It appears most stock from HTM that could be sold in OMOs has reached a limit or is near it. Most banks don't have excess and they are selective..." said Ritesh Bhusari, joint GM, South Indian Bank. Synopsis RBI accepted bids worth ₹19,203 crore at this OMO, lower compared to the notified amount of ₹25,000 crore. RBI had received bids worth ₹50,369 crore. This is first FY26 OMO auction where RBI accepted a lower amount. Mumbai: The Reserve Bank of India (RBI) accepted a lower-than-notified amount at its open market operations to purchase bonds on Monday even as market participants sought to sell securities worth twice the announced offer on the table. This probably indicates the central bank is comfortable with the current liquidity. ADVERTISEMENT RBI accepted bids worth ₹19,203 crore at this OMO, lower compared to the notified amount of ₹25,000 crore. RBI had received bids worth ₹50,369 crore. This is first FY26 OMO auction where RBI accepted a lower amount. RBI's steps have helped lift system liquidity. Government bonds maturing in 2029, 2032, 2033, 2034 and 2036 were part of Monday's auction. The 10-year benchmark yield closed at 6.24% on Monday. "The auction cut-off prices were almost in line with market levels, for the semi-liquid 2029 and 2033 maturities. Since 2025, banks have offloaded ₹5 lakh crore of bonds. Following this liquidation, their willingness to sell has diminished," said VRC Reddy, head of treasury at Karur Vysya Bank. "It appears most stock from HTM that could be sold in OMOs has reached a limit or is near it. Most banks don't have excess and they are selective..." said Ritesh Bhusari, joint GM, South Indian Bank. (You can now subscribe to our ETMarkets WhatsApp channel) Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains How Pi42 is simplifying crypto trading: CTO Satish Mishra on integrating technical & fundamental insights NEXT STORY
Reuters
28-02-2025
- Business
- Reuters
India central bank's FX swap oversubscribed 1.6 times
MUMBAI, Feb 28 (Reuters) - The Reserve Bank of India's longer-term dollar/rupee buy-sell swap witnessed robust demand with the auction drawing bids 1.6 times the $10 billion notified amount. The central bank accepted 161 bids at the auction with the premium cut-off set at 6.55 rupees. A total of 244 bids worth $16.2 billion were received. Bankers had expected the swap to witness good demand. The central bank will inject more than 870 billion rupees ($9.96 billion) into the banking system next week under the swap, which is part of a series of steps to inject rupee liquidity. The settlement of the initial leg of the swap will take place on Tuesday, with a reversal three years later. "The swap will serve three purposes – it will allow corporates to borrow funds a bit cheaper, secondly it will help RBI on liquidity injection and thirdly RBI will be able to reduce their forward book," said Vikas Jain, head of India fixed income, currencies and commodities trading at Bank of America. The swap's tenure and size exceeded the central bank's previous $5 billion, six-month swap that was conducted in late January. "The quantum of the swap has surprised the market and we don't expect any other FX swap auction for the remainder of this financial year," Ritesh Bhusari, joint general manager for treasury at South Indian Bank. India's fiscal year runs April through March. ($1 = 87.3900 Indian rupees) here.
