RBI injects Rs 50,000 crore, rejects 2040 bond bids

The Reserve Bank of India rejected all bids for its 8.30%, 2040 paper in its latest open market operation, while accepting the full ₹50,000 crore for other securities. Banks likely bid above market price for the rejected paper, seeking to book profits on illiquid securities. The central bank also has two more OMOs and a USD/INR swap auction scheduled.