More Stories

Informist, Friday, May 9, 2025

--RBI did not buy or sell any gilts outside OMO auction in week ended May 2

MUMBAI – The Reserve Bank of India did not buy or sell gilts on-screen in the week to May 2, according to central bank data released Friday. This was the sixth consecutive week that the central bank stayed out of the secondary market, after net buying gilts worth INR 100 million on-screen in the week ended Mar. 21.

The data released Friday showed the central bank bought INR 200.00 billion worth of gilts through auction under its open market operations, settled on Apr. 30. So far in 2025, the central bank has bought gilts amounting to INR 4.40 trillion through several OMO auctions. 

The RBI announced the purchase of gilts worth INR 1.25 trillion through four auctions in May. The first two auctions of the four scheduled took place this week. The RBI accepted the entire notified amounts of INR 500 billion and INR 200 billion at the OMO auctions on Tuesday and Friday, respectively. 

At the auction on Friday, the central bank bought the 6.54%, 2032, the 7.57%, 2033, the 6.19%, 2034, the 6.64%, 2035 and the 7.54%, 2036 gilts. Cut-off prices at the auction were sharply below those indicated by Financial Benchmarks India Pvt. Ltd. Thursday. The RBI has focused on infusing durable liquidity into the banking system to ensure proper transmission of monetary policy. The response to its daily variable rate repo auctions has been increasingly muted, with the average quantum of bids at INR 51.11 billion this week. The quantum of the auctions starting Monday has been the same, at INR 250 billion. 

At the post-policy press conference on Apr. 9, RBI Governor Sanjay Malhotra had said the central bank aimed to ensure proper transmission of the repo rate to the banking system and economy, and would ensure a sufficient liquidity surplus in the banking system. In the April monetary policy review, the Monetary Policy Committee cut the repo rate by 25 basis points to 6.00% and changed its stance to 'accommodative' from 'neutral'.

On Thursday, the RBI net absorbed INR 1.33 trillion from the banking system, slightly lower than INR 1.42 trillion on Wednesday.  End

Reported by Cassandra Carvalho

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.