RBI to buy and sell Rs 10,000 cr in bonds to manage its balance sheet

According to the latest available figures, the Reserve Bank of India had about Rs 9 trillion worth of bonds on its books

The Reserve Bank of India (RBI) on Thursday said it will sell Rs 10,000 crore worth of short-term bonds, and buy an equivalent amount in long-term debt on Monday.
 

This is a revenue and liquidity neutral operation, possibly aiming at the central bank's balance sheet management, though the RBI did not specify a reason.
 

However, the long-term bond yields fell after the open market operation announcement. The 10-year bond yield fell 17 basis points to 6.052 per cent from its previous close of 6.223 per cent.
 

A similar exercise was undertaken by the RBI in the past to bring down