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RBI's ₹50,000 Crore OMO Results Revealed: What's Next for G-Sec Market?

The Reserve Bank of India has just released the results of its latest Open Market Operation purchase auction. It successfully accepted the full ₹50,000 crore across a range of government bonds, with specific yield cutoffs set for each. In a separate move, the central bank has announced an underwriting auction for tomorrow. This auction will cover a fresh sale of government securities worth ₹28,000 crore.

Key Points: RBI OMO Purchase Auction Results and Underwriting Auction Details

  • RBI accepted the full notified amount of ₹50,000 crore across seven government securities
  • The 7.26% GS 2032 bond saw the highest acceptance at ₹21,189 crore
  • An underwriting auction for a separate ₹28,000 crore G-Sec sale is set for December 12
  • The auction will use a multiple-price method on the e-Kuber platform
2 min read

RBI announces OMO purchase auction results; to hold underwriting auction for Rs 28,000-crore G-Sec sale on Dec 12

RBI announces results of ₹50,000 crore OMO purchase auction and schedules underwriting auction for ₹28,000 crore G-Sec sale on December 12. Get key yields and details.

"Detailed results will be issued separately, the RBI added. - Reserve Bank of India"

New Delhi, December 11

The Reserve Bank of India on Thursday released the results of its Open Market Operation (OMO) purchase auction of Government of India securities, aggregating to a notified amount of Rs 50, 000 crore, and also announced plans to conduct an underwriting auction for a separate G-Sec sale on December 12.

In the OMO purchase auction held earlier today, the RBI accepted a total face value of Rs 50,000 crore across seven government securities. The highest acceptance, at Rs 21,189 crore, was recorded for the 7.26% GS 2032 bond, followed by Rs 15,316 crore for the 7.02% GS 2031 bond.

The 6.75% GS 2029 security saw an uptake of Rs 6,638 crore, while the 6.79% GS 2034 and 6.92% GS 2039 securities drew Rs 1,033 crore and Rs 657 crore, respectively. The 7.54% GS 2036 bond accounted for Rs 3,942 crore, and the longest-dated 6.67% GS 2050 paper saw an acceptance of Rs 1,225 crore.

The central bank's yield cutoffs stood at 6.1277% for the 2029 maturity, 6.4391% for the 2031 paper, and 6.6021% for the 2032 bond. The 2034 security was priced at a cut-off yield of 6.6515%, while yields for the 2036 and 2039 papers were fixed at 6.8373% and 6.9600%, respectively. The 6.67% GS 2050 bond had the highest cutoff yield at 7.2902%, with corresponding cutoff prices ranging from Rs 92.91 to Rs 105.18. Detailed results will be issued separately, the RBI added.

Separately, the central bank announced that it will conduct an underwriting auction on December 12 for the Government of India's sale (re-issue) of securities aggregating Rs 28,000 crore.

The auction will cover the 6.68% GS 2040 for Rs 16,000 crore and the 6.90% GS 2065 for Rs 12,000 crore. Under the underwriting framework notified in November 2007, each Primary Dealer (PD) will have a Minimum Underwriting Commitment (MUC) of Rs 381 crore for the 2040 bond and Rs 286 crore for the 2065 bond, which will also apply to their minimum bidding commitments under the Additional Competitive Underwriting (ACU) segment.

The underwriting auction will follow a multiple-price method and will be conducted via the e-Kuber platform between 9:00 a.m. and 9:30 a.m. on Friday.

- ANI

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Reader Comments

P
Priya S
As a small investor, these details are a bit overwhelming. Can someone explain in simple terms what this means for my fixed deposits and recurring deposits? Will interest rates go down now?
R
Rohit P
The underwriting auction for Rs 28,000 crore tomorrow is the key takeaway. Primary Dealers have their work cut out. Hope this smooths out the yield volatility we've been seeing. RBI's actions are crucial ahead of the budget.
S
Sarah B
Interesting to see the yield cutoffs. The 7.2902% for the 2050 bond reflects the long-term inflation expectations. While necessary, I hope these large-scale operations don't crowd out private sector borrowing completely.
V
Vikram M
Rs 50,000 crore is a significant infusion. This OMO purchase should provide some relief to the banking system's liquidity deficit. Timely move before the year-end pressure. Bharat's central bank is on the ball!
K
Karthik V
With all due respect to the RBI's technical expertise, the communication could be more accessible to the common public. Articles like this are important, but we need simpler explainers on DD News or Rajya Sabha TV about how this affects the aam aadmi.
A
Ananya R
The detailed breakdown of which

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