RBI cash withdrawal auction trims 10 year bond yield
Business
India's benchmark 10-year bond yield was trading at 6.9525%, compared with 6.9625% in the previous trading session after the Reserve Bank of India (RBI) announced a big move to soak up excess money in the system.
The RBI is rolling out a long-term cash withdrawal auction, in order to manage surplus liquidity in the system.
RBI holds ₹7T 30 day VRRR
To absorb the surplus, mostly from recent foreign deposit inflows, the RBI is holding a ₹7 trillion, 30-day Variable Rate Reverse Repo (VRRR) auction.
Meanwhile, rising global oil prices and talk of US interest rate hikes are adding more pressure on India's financial scene.
All these steps are about keeping the economy steady when global factors are making things tricky.