It is hard to say if the OMOs are being done to soften yields, or to fill up the central bank's stock of bonds, but yields did not move up sharply in auctions
Central bank does huge OMO silently to control domestic bond yields
Bid and offer pattern shows a healthy market response
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Apex bank announces change in market timing, trading hours to function from 10 am to 2 pm
The central bank received bids worth Rs 45,049 crore for Friday's open market operation
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.
The decision by the Reserve Bank of India spurred speculation that it has run out of ammunition after slashing rates five times this year.
From Rs 4 trillion in June 2017, the core liquidity in the banking system has now fallen to about Rs 400 billion