India cbank buys long-term bond in open market as they are more in supply

Last Updated: Wed, Jan 30, 2013 10:20 hrs

MUMBAI, Jan 30 (Reuters) - The Reserve Bank of India buys long-term bonds in its open market operations (OMOs) because such bonds are more in supply, Deputy Governor H.R. Khan said on Wednesday.

Khan was speaking to analysts a day after the central bank cut its key repo rate and banks' cash reserve ratio by 25 basis points each.

The central bank buys bonds through OMOs to ease liquidity tightness in the banking system. (Reporting by Shamik Paul; Editing by G.Ram Mohan)

More from Sify: