The Reserve Bank will pay Rs. It will also sell along with the purchase of 10000 crore bonds
Mumbai, Ta. 20 December 2019, Friday
Through open market operations (OMOs), the Reserve Bank will buy bonds worth Rs 5.6 crore on December 3 and sell the same amount of bonds. Market sources believe the move is in part to reduce the yield on long-term bonds.
Bonds will be traded in the secondary market. The Reserve Bank's decision led to a three-month low in bonds on Friday, improving three-month bonds.
The Reserve Bank will buy maturity bonds of 8.5 percent and sell the bonds at Rs 5 crore for the remainder of this year. After this announcement, the yield on the maturity bonds of six had fallen by 5 basis points to 8.5 percent. While both investment and consumptions are currently weak in the country, policymakers plan to increase credit and accelerate economic growth.
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