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RBI receives bids 6 times more than face value of bonds under swapping programme

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MUMBAI : The Reserve Bank of India received ₹64,746 crore worth of bids or six times more than the face value of bonds it offered to buy from the market, under the bond swapping programme billed as Operation Twist.

For the sale of securities, RBI received nearly ₹50,260 crore worth of bids or five times more than the offer. The RBI had earlier announced to conduct a simultaneous buy-sale market intervention of government securities under open market operations (OMO) for Rs10,000 crore each on 27 April.

Typically, the central bank conducts OMO sales to suck out excess liquidity in the financial system, or OMO purchases to infuse liquidity in a single day.

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