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Listen to this article in summarized format Higher yields suggest a premium demanded from the investors. The OMO comes ahead of ₹28,000 crore weekly bond auction scheduled Friday by the RBI. The Reserve Bank of India's open market operation sale received robust investor interest. This operation aimed to absorb surplus liquidity from the banking system. The central bank accepted bonds at yields higher than prevailing market rates. This move precedes a significant weekly bond auction scheduled for Friday. Further liquidity absorption measures are planned for the coming week. "The yields were slightly higher than prevailing market levels and expectations, but the OMO was well subscribed. Since the sale was fully subscribed, it did not lead to any significant negative reaction in yields," said Alok Singh, head of treasury at CSB Bank. Read more: Paytm karo, back in vogue again: Can the stock reclaim IPO price after 5 years and 480% rally? For example, the yield of the five-year paper closed at 6.78% on Thursday, while the cut off yield in the OMO was 6.90%. The 6.79% GS 2029 three-year paper was taken at a cutoff yield of 6.70%, while it closed at 6.66%. The RBI is conducting OMOs to absorb surplus system liquidity and align the weighted average call rate (WACR) with the policy rate. Selling securities in the OMO is one of the measures the central bank uses to drain excess liquidity in the banking system. Read more: Retail investors pull Rs 5,674 crore from stocks, invest Rs 12,618 crore into IPOs in July-August Overall liquidity now stands at ₹7.37 lakh crore on September 16, while the next OMO sale of ₹25,000 crore will take place on September 21. The WACR is at 5.05%, and has been below the 5.25% policy repo rate since late July. The RBI will also conduct a 3-day variable rate reverse repo (VRRR) operation for ₹2.25 lakh crore on Friday. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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