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RBI buys bonds worth Rs 8,109 cr under OMO

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Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 2:49 AM IST

As part of the strategy to infuse liquidity in the system, the Reserve Bank of India (RBI) today bought bonds worth Rs 8,109.48 crore under open market operations (OMO), much lower than the Rs 12,000 crore target.

Four securities were on offer for OMO but RBI subscribed only to two, the central bank said in a statement.

While the government security (G-Sec) maturing 2018, with a coupon rate of 7.83%, garnered over Rs 5,234.89 crore, the 7.80% GS maturing on 2021 garnered Rs 2,874.58 crore.

The central bank has infused over Rs 33,100 crore in four tranches in the last one month. While it bought bonds worth Rs 9,435.48 crore on November 24, it infused Rs 5,782.95 crore on December 1 this year.

On December 8, it bought bonds worth further Rs 9,092.9 crore, followed Rs 8,790 crore on December 22.

OMOs are the "first preference" of RBI while injecting liquidity and there is an opportunity to raise up to Rs 2.74 lakh crore through the window.

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RBI Deputy Governor Subir Gokarn had last month said that liquidity is likely to be under pressure for some more time on account of such as advance tax payments.

Overnight drawings by banks from RBI's liquidity adjustment facility have exceeded Rs 1,20,000 crore and, it has said in the past that deficit has exceeded its targeted 1% of net demand and time liabilities (NDTL).

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First Published: Dec 29 2011 | 6:54 PM IST

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