RBI sells 50,000 cr bonds to curb surplus liquidity
Business
The Reserve Bank of India just sold ₹50,000 crore worth of bonds to help manage the flood of extra money in the banking system.
Liquidity recently hit a huge ₹11 trillion.
These bonds, set to mature between 2029 and 2032, were snapped up at prices ranging from ₹102.25 to ₹105.63.
RBI plans 2 1L cr auctions
This is just round one: RBI plans two more big bond sales on September 21 and 28, aiming to pull a total of ₹1 lakh crore out of the market.
The move is already nudging up bond yields (the five-year yield rose to 6.83%), as investors adjust to the increased supply, all part of RBI's effort to keep things steady in the financial system.