RBI buys bonds worth Rs 35,000 crore under second tranche of G-SAP

The Reserve Bank of India’s (RBI's) second tranche of government securities acquisition programme (G-SAP) witnessed massive response as the central bank mopped up Rs 35,000 crore of the stock to ease the pressure on the market.

The central bank has been buying bonds both directly, and anonymously, from the market in order to keep the bond yields low.  

The difference between G-SAP and other modes of purchase such as open market operations (OMO), is that the central bank does not refuse to buy bonds. However, it does not also notify in advance how much of a particular bond, from the pre-announced basket