Read more about Monetary policy: RBI to buy Rs 1.2 trillion in G-SAP for Sept quarter on Business Standard. The move impacted the sentiment a little bit and the 10-year bond yields rose 3 basis points from their previous close of 5.99 per cent
Read more about RBI s status quo policy may revolve around Covid-19 pandemic measures on Business Standard. RBI s forecast for growth is 10.5% for the current fiscal year. Most analysts expect the RBI to lower it in the June 4 monetary policy announcement
The Reserve Bank of India’s (RBI s) second tranche of government securities acquisition programme (G-SAP) witnessed massive response as the central bank mopped up Rs 35,000 crore of the stock to ease the pressure on the market. The central bank has been buying bonds both directly, and anonymously, from the market in order to keep the bond yields low. The difference between G-SAP and other modes of purchase such as open market operations (OMO), is that the central bank does not refuse to buy bonds. However, it does not also notify in advance how much of a particular bond, from the pre-announced basket of bonds, it would buy in the G-SAP.