The Reserve Bank of India (RBI) on March 23 said it has preponed the second tranche of purchase of Rs 15,000 crore of government securities under open market operations (OMOs) to March 26. The OMO purchase auction was earlier scheduled for March 30.
"On review of current liquidity and financial conditions, the RBI has decided to advance the second tranche of purchase of government securities under OMOs for Rs 15,000 crore to March 26, 2020," the RBI said in a release.
The four government bonds to be bought by the RBI in the auction include 8.08 percent-2022; 7.68 percent-2023; 7.27 percent-2026 and 7.17 percent-2028, the release said.
These bonds will be purchased through a multi-security auction using the multiple price method.
The first tranche of OMO purchase auction worth Rs 15,000 crore will be conducted on March 24.
Last week, the RBI said it would conduct two OMO purchase auctions worth Rs 30,000 crore in two tranches in March to provide liquidity to the market.
The RBI had said that with COVID-19-related dislocations, stress in certain financial market segments is still severe and financial conditions remain tight.
"Our endeavour is to ensure that all markets segments function normally with adequate liquidity and turnover," it had said.
Source:- moneycontrol.com