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 "Bonds, Govt bond")
Illustration: Ajay Mohanty
The Reserve Bank of India sold government bonds from its portfolio for a fourth consecutive week ending August 2, but the sale amount was lowest in the four weeks, data on Friday showed.
The RBI sold bonds worth Rs 1,570 crore ($187.1 million). This brings its aggregate sale to nearly Rs 11,700 crore during this period.
In the preceding three weeks, the central bank sold bonds worth Rs 3,985 crore, Rs 2,735 crore and Rs 3,405 crore, respectively. The sale in the week ended July 12 was its first bond sale in more than 10 months.
The RBI typically sells or buys bonds to adjust banking system liquidity and rates in the market to align with monetary policy.
India’s banking system liquidity surplus jumped in July, with a daily average of more than 1 trillion rupees amid heavy government spending and the central bank’s interventions in foreign exchange market.
The surplus hit a more than two-year high in early August and the bond sales signal the RBI is not comfortable with surplus liquidity while inflation remains above its 4% target.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 09 2024 | 6:00 p.m IS
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