Bond Yield Giri from Reserve Bank’s OMO scheme – Bond Yield Fell from Reserve Banks Omo Schem

The benchmark bond yield on Tuesday after the announcement of another open market operation (OMO) auction to buy bonds by the Indian Reserve has declined by 6 basis points in the benchmark bond. The Reserve Bank has planned to buy government securities worth Rs 1.25 lakh crore. For this, auction will be held on 4 stages on May 6, 9 May, May 15 and May 19.

The dealer associated with a government bank said, “The announcement of the OMO auction by the Reserve Bank amid weak profit recovery brought enthusiasm in the market.” He said that the manner in which the Reserve Bank is providing cash to the market, the bond market is benefiting most occasions.
Along with this, the Reserve Bank on Tuesday bought a security of Rs 20,000 crore through OMO auction.

Last week, foreign banks emerged as the largest vendor of the gilt market and the estimate of the market shareholders suggests that they purely sold a net selling of Rs 9,800 crore. Due to this, the 10 -year benchmark bond yield increased by 5 bps last week.

This selling was mainly for profit booking. Also, caution was also a reason due to tension in Kashmir. On Friday, the estimate of the upcoming auction of 10 years bonds increased the selling pressure. A primary dealership dealer said, ‘Foreign banks were the biggest sellers, they made profits. After that private banks are located. ‘

First Published – April 29, 2025 | 10:34 pm IST