Open Market Operations

OMO refers to the purchase or sale of government securities in the open market by the central bank.

Explained | How does RBI intervene in the bond market? 5 key points

The RBI is walking a tightrope when it comes to debt market management as it drains surplus liquidity from the system in an effort to tame inflation 

RBI to purchase Rs 10,000 crore Government securities through OMO on Thursday

"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations (OMO)," the central bank said.

RBI policy: It is a hard one to call this time (Comment)

The guessing game on whether or not the RBI will cut its key policy rate is an old one. This time around -- hold your breath -- it is going to be no different. But what will give the six-member MPC, which will meet on February 7-8, a real hard time to call, are the equally compelling arguments for and against a rate cut.

'Lower lending rates to cushion note ban,50-75 bps cut likely'

An open market operation (OMO) is a market operation conducted by RBI by way of sale or purchase of government securities to or from the market with an objective to adjust rupee liquidity conditions on a durable basis.

RBI to infuse Rs 10k cr via bond purchase on Thursday

As part of the OMOs, RBI will purchase government securities maturing in 2017 (bearing interest rate of 7.46 percent), 2022 (8.15 percent), 2025 (8.2 percent), 2017 (8.6 percent) and 2030 (7.88 percent).

Lack of triggers to keep markets range bound: UTI Mutual Fund

The only expected trigger is the open market operations (OMO) that the Reserve Bank of India will conduct soon. Till then Amandeep Chopra, Fixed Income Head at UTI Mutual Fund expects markets to remain range-bound.

Lot of scope for rate cuts in coming months: India Inc

PHD Chamber of Commerce President Mahesh Gupta said "there is a lot of scope to reduce the repo rate as good monsoon is visible and inflationary expectations are benign".

RBI to inject Rs 10,000 cr for liquidity crunch on FCNR payout

"To emphasise this point, we announced an Open Market Purchase today. The RBI will proceed in a calibrated way towards the goal of eliminating the structural deficit. When we have done so, episodes of systemic surplus and systemic deficit should be evenly balanced," he said.

Bonds up on RBI plan to boost liquidity through open market buys

The benchmark 10-year bond yield fell as much as 6 basis points to its lowest in nearly seven years at 7.11 percent, while the present benchmark bond 2026 yield hit its life-low.

RBI to infuse Rs 10,000 cr liquidity via OMO

Reserve Bank of India on June 16 said it will buy government securities worth Rs 10,000 crore under the open market operations (OMOs) on June 20 to infuse liquidity into the system

RBI to wait and watch how monsoon, inflation turn out: HDFC Bank

Analysts at HDFC Bank expect to see a 25 bps rate cut in the August meeting, after the impact and progress of monsoon plays its course.

RBI to infuse Rs 15,000 cr liquidity through OMO this week

Reserve Bank will buy government bonds worth Rs 15,000 crore through Open Market Operations (OMO) this week to infuse liquidity in the markets

RBI to infuse Rs 15,000 cr liquidity via OMO

OMOs are market operations conducted by RBI by way of sale/purchase of government securities to/from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.

RBI to infuse Rs 15,000 cr liquidity by OMO purchase of G-secs

OMOs are market operations conducted by RBI by way of sale/purchase of government securities to/from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.

Want to see investment lift-off; 3.5% fiscal deficit imp: UBS

There is a need for investment lift-off and for that to happen, the government will have to mobilise the savings in the economy and make it available to the private sector, says Edward Teather, senior economist Asean & India of UBS Investment Bank

Banks on fire, SBI up 5%; bond yields dip 6% on RBI norms

BSE Bankex rallied more than 5 percent to 11041.46, continuing previous day's upmove as country's largest lender State Bank of India gained over 5 percent. Private sector lenders ICICI Bank, HDFC Bank and Axis Bank were up 3-6.5 percent.

10-year yield seen between 8-8.10%: Sandeep Bagla

The market is now expecting measures like a CRR hike and OMO (open market operations) by the RBI. In case an OMO is not announced, bonds could rally tomorrow. The range for the 10-year yield is seen between 8-8.10 percent, says Sandeep Bagla, ICICI Securities.

Falling rupee puts pressure on RBI at $2 bn debt sale

The Reserve Bank of India is due to sell Rs 12000 crore via open market operations as part of its three-prong plan unveiled late on Monday to drain cash from the market to support the rupee, which has lost nearly 10 percent against the dollar since the start of May.

Yields likely to be rangebound with upward bias: Ramanathan

The range for the 10-year yield is seen between 7.40-7.50 percent, says Ramanathan K, ING Invst Mgmt.

Unrealistic to expect sharp RBI rate cuts due to weak rupee

The bonds will shortly find takers in banks and mutual funds, says Ananth Narayan, Co-Head of Wholesale Bank, South Asia, Standard Chartered Bank.

Do not see outflows from bonds to last long: Barclays

Inflation continues to remain soft at least for the next six-nine months with a probable bottoming out in September. We are expecting another 75 basis points of cut in the repo rate in the next six months, says Rohit Arora, emerging markets research, Barclays.

10-year yield seen between 7.25-7.35%: Ramanathan K

Ramanathan K of ING Investment Management sees 10-year yield moving between 7.25-7.35 percent on Wednesday.

RBI may cut OMOs to prod baulky banks on rate cuts

The Reserve Bank of India is wary that open market operations (OMOs), where it buys bonds from the secondary market, is only helping banks to earn profits without stepping up lending activity, which would spur an economy growing at its weakest in a decade.

10-year yield seen between 7.15-7.25%: K Ramanathan

Bond prices will be well supported by the announcement of OMO as well as an expectation of a rate cut in the upcoming monetary policy, says K Ramanathan, ING Invst Mgmt.