RBI mops up just Rs 2,532 cr via bond sales

The Reserve Bank of India (RBI) could on Thursday drain only Rs 2,532 crore — or about a fifth of Rs 12,000 crore liquidity build-up — through open market operation (OMO) sale of government securities that were announced this week as part of steps to stem the rupee's slide against the dollar.

As per results of the auction, the RBI accepted 11 bids worth Rs 777 crore for the 2026 bonds and 10 bids worth Rs 1,755 crore for 2030 bonds.

In all, the RBI had received bids worth Rs 24,279.2 crore, but it accepted bids worth only Rs 2,532 crore.

The results released by the RBI revealed that no bid for 8.07 per cent, 2017 bonds and 8.15 per cent, 2022 bonds was accepted. It further said the cutoff price was Rs 100.75 (cut off yield 8.2343 per cent) for 2026 bonds and Rs 103.8 (cut off yield 8.5444) for the 2030 bonds.

Amid the rupee touching a record low of 61.21 level against the US dollar earlier this month, the RBI had on July 15 come out with a slew of measures, including sucking out liquidity worth Rs 12,000 crore through the OMO to stem the slide.

Rupee back to weakness

The rupee on Thursday extended losses for the second day, dropping 33 paise to 59.67 against the dollar.

The rupee’s losses over the last two sessions has brought the domestic currency close to levels seen before RBI had unveiled a slew of measures to tame the rupee volatility.

The losses in rupee in the past two sessions has brought the rupee close to its levels seen before RBI had unveiled a skew of measures to tame the rupee volatility.

The rupee opened weak at 59.61 and moved in a range of 59.49 and 59.79 before concluding at 59.67.