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Governor Das Hints At Potential Bond Sales Via OMOs

RBI

RBI Governor Shaktikanta Das flagged the option of selling government bonds via open market operations if needed, with a relevant timeline to be provided later before sales start. The Governor said that the central bank will give a notification before launching OMOs.

  • Indian bonds sold off sharply as Das said that the central bank could sell debt to manage liquidity. Benchmark 10-year yield jumped more than 10bp, the most in a year.
  • Earlier in the day, the RBI kept interest rates unchanged, in line with expectations.

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