 "Urban cooperative banks' business size may be capped at Rs 20,000 cr")
The Reserve Bank of India (RBI) on Monday conducted its third special open market operation (OMO) where it bought long-term bonds and sold short-term tenure bonds to correct the yield spread.
The cut-off yield for the de-facto 10-year bond (9-year now) came at 6.54 per cent, three basis points lower than the market close on the paper. The central bank bought three papers maturing between 2024 and 2029. The total amount offered by the participants were Rs 64,505 crore for a purchase plan of Rs 10,000 crore.
Unlike the past two OMOs, the central bank sold its full quota of Rs
