RBI to conduct first OMO for state bonds worth Rs 10,000 cr on Oct 22

Reserve Bank of India (RBI) will conduct first Open Market Operations (OMOs) to buy State Developments Loans (SDLs) aggregating Rs 10,000 crore through auction on October 22, 2020 to improve liquidity and pricing for these bonds.

The size may be enhanced in the subsequent auctions, depending on market response, RBI said in the statement.

On October 9, RBI had announced intent in the Statement on Developmental and Regulatory Policies OMOs to purchase state government bonds.

The central bank said it will buy bonds maturing between January 2029 and March 2031. It is offering to purchase bonds issued by 15 states including Assam, Bihar,