To maintain liquidity, RBI to purchase Rs 10,000-crore govt bonds via OMO

The central bank will conduct open market operations (OMO) on March through a multi-security auction

The Reserve Bank of India (RBI) on Wednesday said it would buy Rs 10,000 crore of bonds from the secondary market to keep the market liquid, even as it infused Rs 25,000 crore of liquidity through long-term repo operations (LTRO).

“With the heightening of COVID-19 pandemic risks, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads. It is important to ensure that all market segments remain liquid and stable, and function normally,” the RBI said in a statement on its website. 

Therefore, the central bank will conduct open