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RBI squeezes money markets to spur selloff in shorter bonds


RBI squeezes money markets to spur selloff in shorter bonds
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Subhadip Sircar
, Bloomberg
India’s key money-market rates and yields on short-term debt rose after the central bank took its first small step toward unwinding emergency pandemic measures.
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India’s key money-market rates and yields on short-term debt rose after the central bank took its first small step toward unwinding emergency pandemic measures.
The interbank call rate rose to as much as 3.50% as against Friday’s weighted average of 3.18% while the yield on a five-year bond was up 10 basis points after the Reserve Bank of India said late Friday it plans to drain liquidity via a reverse repo operation. ....

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RBI Signals Resumption Of Normal Liquidity Management Operations


RBI Signals Resumption Of Normal Liquidity Management Operations
Jan 09 2021, 9:10 AM
January 08 2021, 6:16 PM
January 09 2021, 9:10 AM
The Reserve Bank of India said it will resume normal liquidity management operations as the economy and financial market conditions stabilise. The first steps announced by the central bank will help target the price of liquidity by pushing up short-term rates even as the banking system remains flush with funds.“On a review of evolving liquidity and financial conditions, it has been decided to restore normal liquidity management opera.
The Reserve Bank of India said it will resume normal liquidity management operations as the economy and financial market conditions stabilise. The first steps announced by the central bank will help target the price of liquidity by pushing up short-term rates even as the banking system remains flush with funds. ....

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