Indian bond yields opened 5 basis points down on January 28, a day after the Reserve Bank of India (RBI) announced a string of measures to inject liquidity into the banking system.
The 10-year benchmark bond 6.79 percent 2034 yield opened at 6.6353 percent against a 6.68 percent close in the previous session.
On January 27, the central bank announced a series of measures to inject liquidity in the banking system, including a Rs 60,000 crore open market operations (OMO) purchase in three tranches, and a variable rate repo (VRR) auction in February.
The OMO purchase will be done in three tranches of Rs 20,000 crore each, wherein RBI will buy government securities from the open market, injecting liquidity into the system. The auctions will take place on January 30, February 13 and February 20.
The central bank will also conduct of USD/INR Buy/Sell Swap auction of $5 billion for a tenor of six months.
This is expected to add Rs 1.5 lakh crore liquidity to the banking system. The central bank said it would continue to monitor conditions and take additional steps to maintain orderly liquidity.
The article originally appeared on Moneycontrol.
