Mumbai, Dec 23 (SocialNews.XYZ) To improve liquidity, the Reserve Bank of India on Monday simultaneously sold short-term government securities and purchased long-term bonds under open market operations.
The RBI's sales and purchase transactions were capped at Rs 10,000 crore each.
Under its OMO operations, the RBI sold only about Rs 6,825 crore worth of short-term securities maturing next year, whereas it purchased Rs 10,000 crore worth of long-term securities maturing in 2029.
The operation is likened to the Federal Reserve's 'operational twist' -- which involved swapping short-term treasury securities for long-term government debts conducted in 2011-12.
As per the data, the RBI received 161 proposals to buy the securities worth Rs 10,000 crore.
The OMOs attracted a healthy investor response as bids worth over Rs 20,000 crore for both the transactions were received.
Source: IANS
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