By IndiaHub 
The paper maturing in 2035 saw the highest bids worth ₹28,612 crore, while the paper maturing in 2032 saw the lowest bids worth ₹3,735 crore, RBI data showed. The OMO had papers maturing between 2029 and 2036.
“Compared to the OMOs conducted in March, the recent auctions are better received. Market participants, while selling their bonds, are not selling aggressively and hence the discount to market price has reduced,” said Rajeev Pawar, head of treasury at Ujjivan Small Finance Bank.
JPMorgan Chase CEO Jamie Dimon advocates for taxing carried interest, aligning with Donald Trump’s efforts to close the loophole benefiting private market investors. Dimon suggests using the additional revenue to double income tax credits, benefiting communities and families. He also cautioned about a potential “crack in the bond market” due to government overspending and quantitative easing.
“People seem to be holding back from selling aggressively because there are expectations of further OMOs. We also have another OMO happening on Monday,” Pawar said.
RBI will conduct another OMO for ₹25,000 crore on May 19, the last auction scheduled for May so far. The influx of durable liquidity has also reduced short-term rates of treasury bills. The last 2 T-bill auctions saw yields nearly similar across the 3 tenures-91 day, 182 day and 364 day. The cut-off yield for the 91-day bill was at 5.839%, while yield for 182 day and 364 day T-bill was 5.84%.
