With reference to the Indian government bond market and RBI actions, consider the following statements: 1. Clean Max Enviro Energy raised ₹2,500 crore through green debt securities. 2. The 10-year government bond yield reached a peak of 7.19%. 3. The RBI conducted an OMO sale of ₹50,000 crore to manage liquidity. Which of the statements given above is/are correct?

The 10-year yield closed at 7.19%, its highest since April 2024

GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims· 29 September 2026

Monetary policy and liquidity management: a GS3 case study on sovereign bond yields and OMOs.

Why in news

The 10-year government bond yield hit a peak of 7.19% due to liquidity withdrawal and rising global yields, while the RBI conducted an OMO sale of ₹25,000 crore.

Background

The 10-year yield reached 7.19%, the highest since April 2024. The RBI conducted an Open Market Operation (OMO) sale of ₹25,000 crore to reduce system liquidity. Clean Max Enviro Energy raised ₹2,500 crore via green debt securities.

Facts for Prelims

Fact10-year yield closed at 7.19% as of September 2026
FactRBI conducted an OMO sale of ₹25,000 crore to reduce system liquidity
FactBrent crude oil prices rose to $107.30
FactUS 10-year yield hit 5.23%, its highest since 2007
FactClean Max Enviro Energy raised ₹2,500 crore through green debt securities

Prelims practice question

With reference to the Indian government bond market and RBI actions, consider the following statements:

Clean Max Enviro Energy raised ₹2,500 crore through green debt securities.
The 10-year government bond yield reached a peak of 7.19%.
The RBI conducted an OMO sale of ₹50,000 crore to manage liquidity.

Which of the statements given above is/are correct?

(a)3 only
(b)1 and 2 only
(c)1 and 3 only
(d)2 and 3 only

Show answer

Answer: (b) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: The RBI conducted an OMO sale of ₹25,000 crore.

For Mains

Q. Analyze the impact of global yield fluctuations and domestic liquidity management on India's sovereign bond market and interest rate stability.

Dimensions to cover in your answer

Monetary transmission: Impact of RBI's OMO sales on domestic liquidity and short-term interest rates
Global spillover: Correlation between US 10-year yields and capital flows in emerging markets
Fiscal strategy: Shift towards longer-term papers to manage debt maturity profiles

Keywords: Liquidity management · Open Market Operations · Sovereign yield · Green debt securities · Monetary policy

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