Bond market expects massive OMO to help govt meet Rs 12 trn borrowing goal

So far this fiscal, RBI has bought about Rs 1.14 trn of bonds from the secondary market, most of them unannounced

The bond market is expecting substantial amount of secondary market bond purchases by the Reserve Bank of India (RBI) to cool down yields and enable the government to sail through the record Rs 12 trillion borrowing programme.

The RBI buys or sells bonds from the secondary market through its open market operations (OMO) programme. While the OMOs are largely announced, the central bank also buys bonds unannounced. So far this fiscal, the RBI has bought about Rs 1.14 trillion of bonds from the secondary market, most of them unannounced. This could be termed as indirect monetization, something which the central