MUMBAI, Jan. 10 -- In the third open market operation (OMO) in as many weeks, the Reserve Bank of India (RBI) on Monday, 7 January, bought '10,000 crore of three long-term securities while selling a same amount of three short-term bonds.
The Reserve Bank had announced the simultaneous purchase and sale of government securities under OMOs for '10,000 crore each, last week. Typically, the central bank conducts OMO sales to suck out excess liquidity in the financial system, or OMO purchases to infuse liquidity in a single day.
In the first special OMO conducted on 23 December, RBI had purchased '10,000 crore worth of 2029 long-term securities, for which it had received bids worth '20,826 crore. The central bank also sold short-term bonds wor...