Discover and read the best of Twitter Threads about #OperationTwist

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Excellent decision by RBI to reject bids of 66473Cr from banks,for 10000Cr OMO,that was scheduled today

Banks,sitting on excess liquidity of 4.06 lakh Cr&demanding high yields

By rejecting bids,#RBI,trying to push down yields to sub 6%&coax banks to lend,to boost credit offtake
Next #OMO bond purchase of 10000Cr,slated for 1stOct

Last OMO under #OperationTwist for 15000Cr,was on 26thMarch'20

RBI,injecting liquidity regularly via #OpTwist,wherein it buys long dated paper&sells short term paper

@narendramodi gov's efforts to flatten rate curve,laudable
MPC to meet between 29thSep-1stOct'20

#RBI slated to keep status quo&not lower rates--While Aug CPI at 6.69% is lower than July #RetailInflation of 6.93%,fact is,#CPI is still on higher side

RBI expected to continue with quantitative easing though,by doing #OMOs

#CreditPolicy
Read 3 tweets
Left& @RahulGandhi went berserk when #Moodys downgraded India

Well,besides #Fitch,which projects 9.5% growth for India in FY22,S&P has retained BBB minus,but with #StableOutlook

S&P has praised India's sound net external position&closing of fiscal gap under @narendramodi govt💪
S&P forecasts #GDP growth of 8.5% for India in FY22

S&P's #StableOutlook has been received pretty well by Bond markets with 2029 bonds trading at #Yield of 5.98%&2030@ #BondYield of 5.77%

Global markets will seek cues from #FOMC,as it concludes its 2 day meet today
#Coronavirus
Well,well--#Fed decides to keep rates at #zero,till 2022!In other words,for next 18 months,expect global asset markets to be driven #northwards, by the big #LiquidityTap-Yes #QEInfinity is here

Fed will buy $80billion of treasuries &$40bn of #MBS each month-HUGE

#OperationTwist
Read 3 tweets

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