RBI releases cut-offs for ₹50,000 crore OMO sale operation

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RBI OMO cut-offs 2026

Highlights

RBI set cut-off yields ranging from 6.6007% to 7.0090% for six government securities in its OMO sale operation with a total notified amount of ₹50,000 crore.
The 8.28% GS 2032 bond had the highest accepted face value at ₹18,840 crore, while only ₹1,005 crore was accepted in 7.61% GS 2030.
RBI's OMO sale move reinforced demand, liquidity management and yield signals in the long-term government securities market.

This article was translated from the original. Read the original version by our correspondent here.

OMO sale results and cut-off levels

According to Reserve Bank of India press release 2026-2027/1134, the central bank announced the cut-off levels for the sale of Government of India securities on September 17, 2026. This OMO sale was conducted in 7.59% GS 2029, 6.79% GS 2029, 7.61% GS 2030, 5.77% GS 2030, 6.68% GS 2031 and 8.28% GS 2032.

RBI had not specified notified amounts separately for each security, with the total notified amount set at ₹50,000 crore. Based on accepted face value, ₹7,005 crore was accepted in 7.59% GS 2029, ₹7,255 crore in 6.79% GS 2029, ₹1,005 crore in 7.61% GS 2030, ₹12,645 crore in 5.77% GS 2030, ₹3,250 crore in 6.68% GS 2031 and ₹18,840 crore in 8.28% GS 2032.

The cut-off yields were set at 6.6007%, 6.7023%, 6.8191%, 6.8589%, 6.9080% and 7.0090%, respectively. The corresponding cut-off prices were ₹102.25, ₹100.24, ₹102.50, ₹96.34, ₹99.05 and ₹105.63.

Implications for the government securities market

These cut-off levels indicate market demand and acceptable yields for government securities across different maturities. The longer-dated 2032 security had the highest accepted face value at ₹18,840 crore, while only ₹1,005 crore was accepted in the 7.61% 2030 security.

Through OMO sales, the RBI intervenes in systemic liquidity management and bond market operations. The press release is attributed to Ajit Prasad, Deputy General Manager, Communications, and the central bank said detailed results would be released shortly.

Liquidity in the banking system from a sharp inflow of FCNR(B) deposits shifted from a deficit to a surplus, creating a challenge for the RBI to absorb excess cash—potentially affecting interest rates, bank margins and credit deployment in the short term. Our previous report noted that such large foreign currency inflows support foreign exchange reserves and the balance of payments, while the central bank may consider balancing liquidity through measures such as variable rate reverse repo auctions.

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