Indian Reserve Bank Announces 5.28 Billion Dollar Reverse Repo Deal
The Reserve Bank of India deployed a new 5.28 billion dollar reverse repo operation to absorb liquidity following record surplus levels.
Indian government bond yields remained stable during early Tuesday trading while stock markets declined amidst rising oil prices and escalating tensions in the Middle East. The benchmark 10-year yield, maturing in 2036, settled at 6.96 percent by 10:00 AM local time, showing a minor increase from the previous day's close. To address record-high liquidity surpluses that accumulated over the recent weekend holiday, the Reserve Bank of India announced multiple reverse auction operations designed to drain cash from the banking system. The central bank scheduled a single-night reverse repo transaction worth 5 trillion rupees for Tuesday, equivalent to approximately $52.82 billion. This action follows a similar three-month reverse repo operation earlier in the week where the bank absorbed 2.59 trillion rupees.
