Saudi Arabia s Wealth Fund Joins EM Rush to Tap Bond Market
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Saudi Arabia s Wealth Fund Joins EM Rush to Tap Bond Market
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Reserve Bank of India (RBI) Governor Shaktikanta Das had stumped the market in the previous two policies - in August and in October - first with action and then with words.
In August, it was the introduction of an incremental cash reserve ratio (I-CRR) to take out excess liquidity, which took the markets by surprise.
In October, there was no action. Rather, what is known as open mouth operation , Das comment that the central bank might conduct open market operations (OMOs) by selling bonds tempered the euphoria in the bond markets after JP Morgan s inclusion of India in its Emerging Market Bond Index.