India central bank to conduct open-market bond sales to absorb durable liquidity, sources say

MUMBAI, Oct 20 - India's central bank will conduct open market sales of bonds once government spending picks up and there is an improvement in the durable liquidity surplus, two sources aware of the development told Reuters on Friday.

"The RBI is going to look through frictional changes in liquidity and conduct OMO sales only when there is a durable surplus," the second person said."OMOs will be purely need based." Frictional changes refer to short-term swings in banking liquidity while longer-term withdrawal or addition of cash impact durable liquidity.

Banking liquidity is expected to move back to surplus by early November on government expenditure and as bonds worth around 540 billion rupees mature on Nov. 2.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

India cenbank sold net $3.86 billion in spot forex market in AugustExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »

EU only wants free trade deal with India that gives it 'real' market accessExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »

Stocks slip as earnings ramp up, yields rise amid Mideast developments: Stock market news todayMiddle East tensions are weighing on markets in morning trade on Wednesday.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stocks slip, yields rise as earnings season ramps up: Stock market news todayMiddle East tensions are weighing on markets in morning trade on Wednesday.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stocks slip, oil jumps as hospital blast fans Mideast fears: Stock market news todayMiddle East tensions are weighing on markets in morning trade on Wednesday.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

US futures reach for gains amid surging Treasury yields: Stock market news todayInvestors were treading carefully as the US 10-year yield nudged 5%, with more earnings and a speech by the Fed's Jerome Powell in focus.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »