Debt fund managers, traders to seek clarity from RBI on Operation Twist

Operation Twist is a market term for special open market operations conducted by RBI, where it buys long-term government bonds and sells short-term ones.

Debt fund managers and traders will closely monitor the Reserve Bank of India (RBI) for cues on Operation Twist as factoring in timing and quantum of these market operations has become key to optimising portfolio returns with long-term yields susceptible to sharp easing from these measures.

Operation Twist is a market term for special open market operations (OMO) conducted by RBI, where it buys long-term government bonds and sells short-term ones.

RBI has conducted the operation four times so far. However, the central bank bought more bonds than it sold, which is akin to the traditional OMO purchases in which it directly