The Reserve Bank of India announced that it would buy Rs. 10,000 crore of government bonds via open market operation, after failing to sell all the debt it had offered to bidders. The 10-year government bond yield rose to 7.75% from 7.74% before the auction result was announced. The eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution system.

The bond-purchase announcement is expected to soothe the market, but the RBI may have to conduct a few more to assure investors of its support.

  • The Reserve Bank of India announced that it would buy Rs. 10,000 crore of government bonds.
  • The 10-year government bond yield rose to 7.75 percent from 7.74 percent.