RBI rejects bids worth Rs 664.73 bn at first open market bond buy in FY21

Central bank had planned to buy up to Rs 100 billion ($1.35 billion) worth of six-year to 11-year papers at an open market operation.

The Reserve Bank of India on Thursday rejected all the bids it received at its first outright open market purchase of bonds for this fiscal year, puzzling traders and investors.

The RBI had planned to buy up to 100 billion rupees ($1.35 billion) worth of six-year to 11-year papers at an open market operation. But despite receiving bids worth 664.73 billion rupees in total, it did not accept any of them.

"The RBI seems unhappy with the bids offered. If the market is in stress as (traders) say they are due to the high supply, (the market) should be selling at reasonable