MUMBAI, Oct. 2 -- The Reserve Bank of India (RBI) on Thursday, 24 September, rejected all bids received in its first outright bond purchase of the fiscal year and announced another edition of Operation Twist, signalling its determination to bring down long-term yields.
Against the '10,000 crore of long-term bonds that it had planned to buy under open market operations (OMO), the central bank received bids totalling '66,473 crore, or more than six times its target, and their rejection indicates RBI's discomfort with the high yields demanded by investors.
The purchase of these bonds, maturing between 2026 and 2031, was announced in the week ended 20 September .
The purpose is to bring down the 10-year benchmark yield, which has crossed 6%,...