Amid rising bond yields and expectation of liquidity infusion measures by the market participants, the Reserve Bank of India (RBI) has started absorbing liquidity from the secondary market, albeit in small amounts.
According to latest data, the RBI has conducted open market operations in the last week of April and in the first week of May. In April, it sold bonds worth Rs 870 crore while during the first week of May it sold Rs 1,700 crore to suck out liquidity. The liquidity absorption from the secondary market through open market operations resumed after a gap – since January.
The central bank,