Press release 🌐 Macro 🌍 India

RBI Sells ₹25,000 Crore in Government Bonds via Open Market Operations

The RBI completed a ₹25,000 crore OMO bond sale, accepting bids across five securities with yields ranging from 7.14% to 7.39%, while opting to reject all bids for the 7.10% GS 2034 paper.

🕐 1 min read

6 assets impacted. Net bias: 0 Bullish, 0 Bearish, 6 Neutral. Strongest signal: 7.88% GS 2030 → 4/10 (70% confidence).

📊 Affected Assets (6)

7.88% GS 2030
Neutral 🤖 70%
📅 Short-term 🌍 IN · Explicit

The RBI conducted an Open Market Operation (OMO) sale where it accepted ₹2,820 crore in bids for the 7.88% GS 2030 security. The auction resulted in a cut-off yield of 7.1428% and a cut-off price of ₹102.20, with a partial allotment of 96.66% for competitive bids at the cut-off price.

Catalysts
  • • Successful OMO sale execution by RBI
  • • Market demand reflected by 32 bids received
Risk Factors
  • • Interest rate volatility affecting bond pricing
  • • Liquidity tightening through OMO sales
▼ Show FAQ (2) ▲ Hide FAQ
What was the cut-off yield for the 7.88% GS 2030?

The cut-off yield was 7.1428%.

How much was accepted by the RBI for this security?

The RBI accepted ₹2,820 crore in face value.

6.10% GS 2031
Neutral 🤖 70%
📅 Short-term 🌍 IN · Explicit

The 6.10% GS 2031 security saw significant participation in the RBI's OMO sale, with the central bank accepting ₹8,430 crore of the total ₹8,915 crore bid. The auction cleared at a cut-off yield of 7.2236% and a cut-off price of ₹95.54.

Catalysts
  • • High bid-to-acceptance ratio indicating strong market participation
  • • RBI liquidity management operations
Risk Factors
  • • Market yield fluctuations
  • • Potential for future OMO sales impacting bond supply
▼ Show FAQ (2) ▲ Hide FAQ
What was the cut-off price for the 6.10% GS 2031?

The cut-off price was ₹95.54.

How many bids were received for this security?

45 bids were received.

7.95% GS 2032
Neutral 🤖 70%
📅 Short-term 🌍 IN · Explicit

In the recent OMO sale, the RBI accepted ₹1,600 crore for the 7.95% GS 2032 security out of 50 total bids received. The security was priced at a cut-off of ₹103.21, reflecting a cut-off yield of 7.2659%.

Catalysts
  • • RBI's active management of systemic liquidity
  • • Market appetite for long-dated government securities
Risk Factors
  • • Macroeconomic shifts influencing yield curves
  • • Changes in RBI monetary policy stance
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What was the weighted average yield for the 7.95% GS 2032?

The weighted average yield was 7.2582%.

What was the total bid amount for this security?

The total bid amount was ₹5,875 crore.

7.26% GS 2033
Neutral 🤖 70%
📅 Short-term 🌍 IN · Explicit

The 7.26% GS 2033 security was included in the RBI's OMO sale, with the central bank accepting ₹2,735 crore from 66 bids. The auction concluded with a cut-off yield of 7.3413% and a cut-off price of ₹99.58.

Catalysts
  • • Liquidity absorption via OMO
  • • Market demand for 2033 maturity paper
Risk Factors
  • • Interest rate risk
  • • Market volatility impacting bond prices
▼ Show FAQ (2) ▲ Hide FAQ
What was the cut-off yield for the 7.26% GS 2033?

The cut-off yield was 7.3413%.

What was the weighted average price for this security?

The weighted average price was ₹99.64.

7.18% GS 2033
Neutral 🤖 70%
📅 Short-term 🌍 IN · Explicit

The 7.18% GS 2033 security saw the highest acceptance volume in the OMO sale, with the RBI accepting ₹9,415 crore out of 90 bids received. The auction cleared at a cut-off yield of 7.3947% and a cut-off price of ₹98.85.

Catalysts
  • • Strong institutional interest as evidenced by 90 bids
  • • RBI's liquidity withdrawal strategy
Risk Factors
  • • Duration risk in a changing interest rate environment
  • • Market supply pressures
▼ Show FAQ (2) ▲ Hide FAQ
What was the total amount accepted by the RBI for the 7.18% GS 2033?

The RBI accepted ₹9,415 crore.

What was the cut-off yield for this security?

The cut-off yield was 7.3947%.

7.10% GS 2034
Neutral 🤖 70%
📅 Short-term 🌍 IN · Explicit

RBI received bids for this security but accepted none, with no cut-off yield set.

🎯 Key Takeaways

  • RBI fully met its ₹25,000 crore OMO sale target despite receiving ₹55,518 crore in total bids.
  • The 7.18% GS 2033 security saw the highest demand, with ₹9,415 crore accepted at a 7.3947% cut-off yield.
  • The central bank rejected all bids for the 7.10% GS 2034 security, signaling a preference for specific yield levels.

📝 Executive Summary

The Reserve Bank of India successfully auctioned ₹25,000 crore in government securities through an Open Market Operation (OMO) sale. While total bids reached ₹55,518 crore, the central bank accepted the full notified amount across five different bond tenors, while rejecting all bids for the 7.10% GS 2034 security.

❓ FAQ

What was the total amount accepted by the RBI in the OMO sale?

The RBI accepted the full notified amount of ₹25,000 crore in face value.

Why were no bids accepted for the 7.10% GS 2034 security?

The RBI received bids for the 7.10% GS 2034 security but chose not to accept any, resulting in no cut-off yield being set for that specific bond.