The Reserve Bank of India (RBI) has advanced the scheduled open market operation (OMO) purchase auctions of Government securities (G-Secs) to infuse liquidity aggregating ₹1 lakh crore.
This comes in the wake of a spike in G-Sec yields and the banking system’s liquidity surplus not being sufficient. On 26 January, the liquidity surplus in the banking system was only at ₹56,987 crore. Usually, the surplus should be in the ₹1.50-2.00 lakh crore range.
The OMO purchase auction of G-Secs in two tranches of ₹50,000 crore each will now be conducted on 29 January 2026 and 5 February 2026 instead of 5 February 2026 and 12 February 2026.
The yield of the benchmark 10-year G-Sec (6.48 per cent GS 2035) jumped 6 basis points to close at 6.72 per cent, an 11-month high, against the previous close of 6.66 per cent. In price terms, this G-Sec declined about 42 paise.
Nuvama Wealth, in a report, noted that despite the RBI’s monetary policy committee reducing the repo rate cumulatively by 125 basis points since February 2025 to 5.25 per cent, the 10-year G-Sec yield has remained elevated.
This comes on the back of a weak rupee and uncertainty over the India-US trade deal, and news that Bloomberg Index Services would delay inclusion of India’s fully accessible route bonds in its flagship Global Aggregate Index.
Nuvama observed that the banking system’s liquidity fluctuated throughout FY26, driven by rupee depreciation, advance tax outflows and regular GST-related drain.
The report said this week’s overhang of bond supply, including G-Secs and state development loans, has kept the overall bond market sentiments bearish.
Published on January 27, 2026
