RBI announced its next OMO buybacks on Dec 16 for friday. It will be pushing out liquidity on 6, 10, 12 and 17 year tenure securities(MC) The securities all matue in different months but this means the RBI operational data finds these securities to be suitable for pushing out liquidity which th eyield is above 9.3% in the overnight market..The nearly $2 bln compares with ECB's current Euro 489 bln operation this week,

ECB is lending on the 3 year tenure at 1%. Euro is already up at 1.30 since late on Monday and holding and this is a good window for the RBI to sneak in cash The modus operandi of these auctions is liable to change to more T bills if you consider theoretical stability - interbank crunch to 90 day RBI bills..? 

The 6,10, 12, 17 term ssecurities buyback would keep these tenures in demand so Duration of Corp treasury portfolios and funds is unlikely to come down

Posted via email from The India Investment Post