
Operation Twist:
News:
- The Reserve Bank of India (RBI) has scheduled another round of bond sale and purchase auction of ₹10,000 crore each on July 2.
More in the news:
- RBI will purchase longer tenure government bonds, that are maturing in 2027, 2029, 2031 and 2033, while selling four securities of shorter maturity, two of them maturing this year and two next year.
More about Operation Twist:
- It refers to purchase and sale of government securities under Open Market Operations
- Operation Twist is primarily aimed at managing yields.
- The move will help soften the yields on long tenure bonds that have stayed elevated and help the government in borrowing funds at a lower rate.