NEW ROUND OF OPERATION TWIST SOON

MUMBAI: The Reserve Bank of India (RBI) on Tuesday announced the latest edition of Operation Twist (OT), in which it will simultaneously buy long-term government bonds and sell short-term papers to bring down longterm interest rates.

RBI said that under open market operations (OMOS), it will conduct two bond swaps of ₹10,000 crore each on August 27 and September 3, buying securities with tenures between 4 and 12 years, and selling short-dated securities maturing in October and November.

Typically, RBI conducts OMO sales to drain liquidity and OMO purchases to infuse liquidity.