RBI Announces Cut-Off Yields Across Bonds in Latest OMO Purchase Auction

The Reserve Bank of India (RBI) has announced cut-off yields for several government bonds during its latest OMO purchase auction, underscoring its proactive role in managing liquidity and stabilizing yields in the debt market.

The auction covered securities maturing between 2029 and 2054, with yields reflecting investor sentiment and RBI’s monetary stance. These results highlight the central bank’s calibrated approach to balancing liquidity conditions, anchoring inflation expectations, and guiding long-term interest rates.

Key Highlights

• 6.75% 2029 Bond: Cut-off yield at 6.0702%
• 6.28% 2032 Bond: Cut-off yield at 6.5237%
• 7.18% 2033 Bond: Cut-off yield at 6.6828%
• 6.79% 2034 Bond: Cut-off yield at 6.7065%
• 6.33% 2035 Bond: Cut-off yield at 6.5941%
• 6.92% 2039 Bond: Cut-off yield at 7.0040%
• 7.09% 2054 Bond: Cut-off yield at 7.3443%

The RBI’s auction results reinforce its commitment to maintaining financial stability while ensuring efficient liquidity management in India’s bond market.

Sources: RBI release, Reuters, Business Standard