RBI likely to step in to cap surge in yields

But the central bank, which is also the government’s investment banker, is set to keep a lid on borrowing costs.

Synopsis

The central bank is likely to announce open market operations, or OMOs, where it declares how much of bonds it intends to purchase and also buy in the secondary markets to convey that its gradual rollback of crisis-era, ultra-loose policies does not mean it will tolerate higher interest rates.

Mumbai: The Reserve Bank of India is set to intervene in the bond market this week to execute its monetary policy objective of low interest rates and bring down yields after a week of turmoil pushed up borrowing costs for the government.The central bank is likely to announce open market operations, or OMOs, where it declares how much of bonds it intends to purchase and also buy in the secondary markets to convey that its gradual rollback of

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