RBI said in view of the recent market developments and based on a fresh review of the current and evolving liquidity conditions, it has been decided to withdraw the open market sale operations scheduled for November 23. Photo: ReutersMumbai: The Reserve Bank of India on Friday said it had scrapped its plan to sell government securities worth Rs10,000 crore through open market operations. In the past few sessions, OMO sales by RBI, worries over a possible fiscal slippage by the government, and increase in crude oil prices led to a rise in bond yields. Bond yields and bonds prices move in opposite directions. “We believe the reversal in RBI’s stance is positive for bond yields and one should see bond yields now heading lower from the current elevated levels.

Source: Mint November 17, 2017 14:48 UTC