The government said it had decided to cancel the auction post review of cash position
On Wednesday, the yield of 10-year G-Sec was trading at 6.88 per cent
The current differential or spread is nearly three times the average spread in the last 10 years.
But avoid taking interest-rate risk in these instruments which will now become easily accessible through the RBI's Retail Direct Scheme
The scheme was launched by Prime Minister Narendra Modi on Friday
The RBI stopped the Government Securities Acquisition Programme (G-SAP), through which it has infused Rs 2.2 trillion of liquidity in the system
'We have flagged the issue of fuel (taxes). Now, it is for the government to make a decision'
The Reserve Bank on Monday said it will conduct an open market purchase of government securities aggregating to Rs 15,000 crore under the G-sec Acquisition Programme (G-SAP 2.0) on September 23. On a review of current liquidity conditions, the central bank also decided to conduct a simultaneous sale of government securities under open market operations (OMO) for an aggregate amount of Rs 15,000 crore on the same day. In a statement, the RBI said it will purchase three government securities of different maturity dates amounting to Rs 15,000 crore. It will also sell three government securities amounting to Rs 15,000 on September 23. The central bank further said it reserves the right to decide on the quantum of purchase and sale of individual securities. The result of the auctions will be announced on the same day.
The Reserve Bank will conduct open market purchase of government securities of Rs 25,000 crore on August 26, under the G-sec Acquisition Programme (G-SAP 2.0).
RBI on Thursday said the next purchase of government securities for an aggregate amount of Rs 20,000 crore under the G-sec Acquisition Programme (G-SAP 2.0) will be conducted on July 22
Direct retail investment facility should lead to better secondary market liquidity in gilts
Keep bulk of your portfolio in low-risk funds; chase returns in residual portion if you have the capacity
This gives credence to the theory that the central bank may not want to issue a fresh set of 10-year paper in a hurry and would rather continue with the existing security
The RBI mopped up a record Rs 26,779 cr of the 10-year bond in pre-announced secondary market operation
The new rules will come into effect from June 14, said the Central bank in an official statement
Repo rate stays at 4%, stance accommodative; Central bank to buy Rs 1.2 trillion of bonds in Q2
The move impacted the sentiment a little bit and the 10-year bond yields rose 3 basis points from their previous close of 5.99 per cent
Expects minimum Rs 1 trn of G-SAP in 2nd quarter, sees it rising to Rs 1.25 trn to keep yields soft
The central bank has been buying bonds both directly, and anonymously, from the market in order to keep the bond yields low
This is the first such 'Operation Twist' this fiscal in which RBI will buy long-term bonds and sell-short term bonds maturing this year