Earlier this week, the central bank had conducted a similar open market operations (OMO) and purchased securities worth Rs 10,000 crore and sold worth Rs 6,825 crore
The central bank had planned to buy up to Rs 10,000 crore of 10-year bonds and sell up to Rs 10,000 crore of four short-term bonds
With this, analysts believe, the RBI intends to lower yields on long-term bonds, and keep the liquidity at the system level intact. The move will allow the government to borrow at lower cost.
Move signals lower bond yield at the long end
The purchase will happen through multi-security auction using the multiple price method