FPJ News Service New Delhi

On a review of current and evolving liquidity conditions, the Reserve Bank has decided to conduct an OMO purchase auction of government securities on April 17, 2025. Accordingly, RBI will buy government bonds worth Rs 40,000 crore.

The liquidity was in deficit in January 2025 with net injection under the liquidity adjustment facility scaling a peak of Rs 3.1 lakh crore on January 23, 2025. However, as a result of a slew of measures injecting liquidity of about 6.9 lakh crore rupees, liquidity deficit tapered during February-March 2025, and further turned into surplus on March 29, 2025. Coupled with government spending picking up pace during the latter half of March, system liquidity further improved and it stood at a surplus of Rs 1.5 lakh crore as on April 7, 2025.

Most Gilts up on rate cut bets; 10-year steady as short bets rise

Prices of government bonds ended higher across most tenures on bets of another 50 basis points of cuts in the repo rate by the RBI's MPC in 2025, dealers said. The 10-year 6.79%, 2034 gilt ended steady, as gains from a strong auction result were offset by profit-booking. Traders also placed short bets on the gilt to purchase other bonds across the yield curve, dealers said.  The 10-year benchmark 6.79%, 2034 bond ended at INR 102.42, from INR 102.43 Wednesday. The bond closed at a yield of 6.44%, flat against Wednesday's close. The yield on the five-year benchmark 6.75%, 2029 gilt fell 4 bps from Wednesday's close.