RBI governor urges bond market to cooperate, announces outright OMO support

While not exactly announcing an OMO calendar for secondary-market bond purchases, the OMO size has been doubled to Rs 20,000 crore in each operation

Reserve Bank of India (RBI) governor Shaktikanta Das had a straight from the heart message for the bond market – RBI stands ready to use all its instruments in order to provide adequate support to the bond market, but market participants must cooperate, and while views can be competitive, they need not be combative.

The bond market participants gave a hat tip to the governor by bringing down yields. And now, the government can pretty well expect the reminder of the borrowing to be done in a non-disruptive manner and possibly at the same 16-year low average rate of 5.82