Lower bond purchase amounts are accepted by RBI in the first FY26 OMO auction.

Mumbai: Despite market participants' attempts to sell assets worth twice the publicized offer on the table, the Reserve Bank of India (RBI) accepted a lower-than-notified sum to buy bonds during its open market operations on Monday. This most likely means that the central bank is content with the liquidity as it stands right now.At this OMO, the RBI received bids totaling ₹19,203 crore, which was less than the ₹25,000 crore notified amount. Bids of ₹50,369 crore were received by RBI. The RBI has accepted a smaller amount in this first FY26 OMO auction.

The actions taken by the RBI have improved system liquidity. The auction on Monday included government notes with maturities in 2029, 2032, 2033, 2034, and 2036. On Monday, the 10-year benchmark yield ended the day at 6.24%. "For the semi-liquid 20, the auction cut-off prices were nearly in line with market levels."It seems that the majority of HTM stock that might be sold in OMOs has either hit or is close to a limit. "Most banks are selective and don't have excess," stated Ritesh Bhusari, joint general manager of South Indian Bank.