The RBI announced another open market operations (OMO) to buy back up to Rs 10,000 crore of bonds on Thursday after the liquidity deficit in the banking system rose to highest in two years.
In the rupee market, implied opening suggests the rupee may start trading at around 73 and dealers expect a range of 72.70—73.30 in the day. Today markets in Korea and Hong Kong are shut for trading.
The OMO is likely to help calm nerves given that advance tax outflows too would create a hole in the liquidity situation. Yield on the 10-year note should trade between 8.05-8.10 percent in the day. Also, market is expecting government borrowing numbers to be announced on Sept. 28.
