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Two-way OMO plan set to keep yields capped

DNMUM402519 | 12/7/2017 | Author : Manju AB | WC :517

Trading at 7.07% earlier, yields dropped to 7.03% post RBI action on rates

Mumbai: Reserve Bank of India (RBI)’s plans to have a two-way open market operations (OMO) set a small rally in the government bonds on Wednesday. The 10-year benchmark government bond ended the day at 7.03% lower than the preceding close of 7.06%. Just before RBI’s policy announcement, they were trading at 7.07%.
A two-way OMO is when the central bank is ready to sell or buy back bonds from the banks to either suck out or release liquidity into the banking system.
“It is heartening to note RBI has also communicated greater clarity on the liquidity framework indicating that it is ready to deploy both short-term and durable tools to absorb or inject liquidity as the need arises,” Chanda Kocchar, managing director and CEO, ICICI Ban
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Don’t forget opportunity costs while investing
DNMUM408247 | 2/21/2018 12:00:00 AM | Author : Rajeshwari Adappa | WC :747

Mumbai: Sapna Mishra had been waiting to sell her flat in a suburb in Mumbai for more than seven years now. She was waiting for the right price and refused to sell at a lower price.The right price, according to her, was Rs 1.5 crore while
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Private banks pull down Sensex 71 points
DNMUM408248 | 2/21/2018 12:00:00 AM | Author : DNA Money Correspondent | WC :215

Mumbai: The benchmark indices, Sensex and Nifty ended in the red zone for the third session in a row on Tuesday.
The Sensex tanked 71.07 points, or 0.21%, at 33703.59, while the broader Nifty fell 18 points, 0.17%, to 10360 dropping by 18 points.
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Auto policy needs to be consistent
DNMUM408252 | 2/21/2018 12:00:00 AM | Author : Edit | WC :207

The government recently took a U-turn over electric vehicle (EV) policy. After all the hoopla created around EVs in the past one year, the draft new automotive policy now looks forward to finalising a ‘technology agnostic’ green mobility roadma
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New RBI committee to look into divergences, frauds and audits
DNMUM408253 | 2/21/2018 12:00:00 AM | Author : DNA Money Correspondent | WC :547

Mumbai: Almost a fortnight after the Rs 11,300 crore fraud broke out at the Punjab National Bank (PNB) involving diamond billionaire Nirav Modi and his associates, Reserve Bank of India (RBI) has come out with preventive measures to guard again
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