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Informist, Friday, Jul. 10, 2026

--RBI net bought gilts worth INR 100 mln via OMO in week ended Jul 3

MUMBAI – The Reserve Bank of India net purchased gilts worth INR 100 million through on-screen open market operations Jun. 29, data released by the central bank Friday showed. The RBI accounts for its on-screen gilt trades based on the day of settlement, effectively meaning that the purchase was made on Jun. 25, the previous trading session. This is the first on-screen purchase of gilts by the RBI since Mar. 20, when the central bank bought the same amount of gilts on-screen.

The minuscule purchase was in line with activity seen in previous quarters, when the central bank bought a token amount of gilts in the secondary market towards the end of the March, December, September, and June quarters of the financial year 2025-26 (Apr-Mar). Traders largely dismissed Friday's data, since the size of the purchase is of little significance. The "Others" segment of gilt market participants--which consists of insurance companies, provident funds, and the RBI--net purchased gilts worth INR 8.97 billion in the secondary market on Jun. 25, according to data from Clearing Corp. of India. 

Speculation of the RBI purchasing gilts, especially the 10-year benchmark 6.94%, 2036 gilt, rose this week after the "Others" segment was the largest net buyer of gilts Wednesday, with net purchases of INR 64.43 billion. Some insurance companies were likely buyers, but purchases were also from all-India financial institutions or the Deposit Insurance and Credit Guarantee Corp., dealers said. Some traders speculated that the purchases were made to replace stock ahead of the redemption of the 8.33%, 2026 gilt Thursday. Others speculated that the RBI had purchased gilts on-screen to offset its dollar sales in the foreign exchange spot market, which has drained rupee liquidity this week. Traders await this week's data, which will be released Jul. 17, for clarity.  End

Reported by Cassandra Carvalho

Edited by Rajeev Pai

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