RBI announces fresh Rs 50K cr auction under G-sec Acquisition Programme 2.0
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RBI on Friday announced that it will conduct two more auctions of Rs 25,000 crore each for open market purchase of government securities under G-sec Acquisition Programme (G-SAP 2.0).
In a virtual address post Monetary Policy Committee meeting RBI Governor Shaktikanta Das said that the fresh auctions would be conducted on August 13 and August 26.
"We will continue to undertake these auctions and other operations like OMOs and operation twist, among others and calibrate them in line with evolving macro economic and financial conditions," Das said.
The auctions help to maintain the yield curve of bonds and ensured liquidity in the system.
The securities will be bought through a multi-security auction using the multiple price method.
RBIs recent G-SAP auctions have focussed on securities across the maturity spectrum with the intention to ensure that all segments of the yield curve remain liquid.
Furthermore, our options are always open to include both off the run and on the run securities in the G-SAP auctions and operation twist. It is expected that the secondary market volumes would pick up and market participants take positions that lead to two-way movements in yields, Das said.
