Traders Breathe Sigh of Relief as India’s RBI Tones Down on Bond Sales
- Need for OMO bond sales hasn’t arisen, says RBI Governor Das
- Yield on 10-year bond may drop to 7.05% by March: Mirae Asset
The Reserve Bank of India headquarters in Mumbai.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Traders in India are betting the central bank may refrain from doing bond sales in the coming months after the monetary authority indicated a reduced need to deploy the tool.
Reserve Bank of India Governor Shaktikanta Das Friday said that liquidity tightened more than envisaged in the last policy, and thus the need for such debt sales hasn’t arisen. Das shocked the markets in October by suggesting the RBI may do open-market bond sales, fueling the biggest rout in a year. The option of doing OMO sales remains open if and when required, Das said in a post policy briefing.