Economics
RBI Finally Comes to Market With Operation Twist to Cool Yields
- Twist announcement comes after weak demand at recent auctions
- RBI must intervene ‘frequently’ to check yields: Quantum Asset
The Reserve Bank of India (RBI) building in Mumbai, India.
Photographer: Kanishka Sonthali/BloombergThis article is for subscribers only.
India’s central bank will resume its Federal Reserve-style Operation Twist after weak demand at two successive auctions and inflation concerns drove up yields. Sovereign bonds climbed.
The Reserve Bank of India will purchase 100 billion rupees ($1.3 billion) of bonds and sell an equivalent amount of shorter debt on Aug. 27 and Sept. 3, respectively, it said in a statement. The last such operation was held on July 2.