Mumbai, September 11, 2026 (Yes Punjab News)
The Reserve Bank of India on Friday announced open market sales of government bonds worth Rs 1 lakh crore as it moves to absorb surplus liquidity in the banking system.
The bonds, maturing between fiscal 2029 and fiscal 2032, will be sold through three tranches of Rs 50,000 crore, Rs 25,000 crore and Rs 25,000 crore. The auctions are scheduled for September 17, September 21 and September 28, respectively.
The RBI said the sales will be conducted through multi-security auctions using the multiple-price method.
For the first auction on September 17, eligible participants will have to submit bids electronically through the RBI Core Banking Solution (E-Kuber) system between 9.30 am and 10.30 am. The auction results will be announced the same day.
The move marks the first net sale of bonds by the central bank in two years. The RBI last sold bonds in the secondary market in September 2024, while it had conducted simultaneous purchases and sales of government securities during fiscal years 2021 and 2022.
Bond yields rose following the RBI’s announcement, with the benchmark 10-year yield touching a more than three-month high. The 10-year bond yield climbed six basis points to 7.035 per cent, while the five-year yield rose nearly 10 basis points to 6.6222 per cent.
The banking system has been left with substantial surplus cash after lenders mobilised a larger-than-expected $127 billion through the RBI’s special foreign exchange mobilisation scheme. The inflows helped push the central bank’s reserves to an all-time high.
The resulting excess rupee liquidity has pushed overnight rates below the policy repo rate, prompting the RBI to deploy measures to absorb surplus funds. At the same time, elevated crude oil prices are adding to concerns over inflationary pressures.
Market participants had been expecting a combination of temporary and permanent liquidity-management measures, including foreign exchange swaps, Market Stabilisation Scheme bonds, OMO sales and a possible increase in the cash reserve ratio.
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