Reserve Bank Governor Raghuram Rajan on Tuesday said the central bank has decided to conduct purchase of government securities under open market operations for an aggregate amount of Rs 10,000 crore on August 11 through multi-security auction using the multiple price method.
However, the inter-bank call money rates dropped further in the absence of demand from borrowing banks amid ample liquidity in the banking system.
The benchmark 7.59 per cent government security maturing in 2026 rose to Rs 103.3125 from Rs 103.15 yesterday, while its yield fell to 7.10 per cent from 7.12 per cent.
The 7.88 per cent government security maturing in 2030 moved up to Rs 106.25 compared to Rs 105.90, while its yield tumbled to 7.15 per cent from 7.19 per cent.
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The 7.61 per cent government security maturing in 2030 edged higher to Rs 104.33 from Rs 104.05, while its yield slipped to 7.11 per cent from 7.14 per cent.
The 7.72 per cent government security maturing in 2025, the 7.68 per cent government security maturing in 2023 and 8.27 per cent government security maturing in 2020 were also quoted substantially higher at Rs 103.65, Rs 103.27 and Rs 104.29, respectively.
Meanwhile, Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 131.72 billion in 32-bids at one-day repo auction at a fixed rate of 6.50 per cent this evening.
It sold securities worth Rs 54.79 billion from 22-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent late yesterday.