The Reserve Bank of India (RBI) reported net liquidity absorption of ₹394.22 billion on Oct. 23, as same-day operations absorbed more liquidity than outstanding operations supplied, leaving the combined position in net absorption.
The central bank's Oct. 26 bulletin put flows from transactions conducted that day at net absorption of ₹1.20 trillion. Operations still outstanding contributed ₹808.70 billion in net liquidity, offsetting part of the same-day absorption without changing the combined result. The RBI recorded ₹312.55 billion in net absorption on Oct. 22, a figure noted in EconoTimes' earlier coverage of Indian bond yields.
Reported one-leg overnight volume was ₹7.09 trillion, with a weighted average rate of 5.74%. From Oct. 22, volume declined by ₹58.82 billion and the average rate increased by eight basis points, from 5.66%. The RBI listed an overnight rate range of 4.30% to 6.25%.
Triparty repo was the largest overnight segment, with ₹4.79 trillion in volume at a 5.75% average rate. Market repo reached ₹2.10 trillion at 5.71%, while call money totaled ₹113.86 billion at 5.78%. Corporate-bond repo volume was ₹90.54 billion at 5.89%.
In a three-day repo auction on Oct. 23, the RBI allotted ₹500.03 billion against a notified ₹500 billion. Bids totaled ₹1.07 trillion; the cutoff rate was 5.58% and the weighted average rate was 5.60%.
Scheduled commercial banks held ₹8.46 trillion in cash balances at the RBI on Oct. 23. The average daily cash reserve requirement for the two-week period ending Oct. 31 was ₹8.33 trillion, the bulletin showed.
The RBI scheduled a four-day variable-rate repo auction for Oct. 26, with a notified amount of ₹1.5 trillion and a reversal date of Oct. 30. Its notice said the decision followed an assessment of near-term liquidity conditions.
