RBI schedules Rs 25,000 crore bond sale for October 13 to absorb liquidity

The Reserve Bank of India announced an Open Market Operation sale of Rs 25,000 crore scheduled for October 13.

The central bank stated the sale aims to absorb surplus liquidity across the banking system.

The 10-year G-Sec reached a three-year high following concerns over the planned bond sale.

Dealers expect bond yields to open 4-5 bps higher on Monday.

The RBI also raised daily CRR maintenance to 99%.

For Indian-origin households tracking India sovereign debt, the central bank is absorbing surplus liquidity and lifting daily reserve requirements.