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  1. Operation twist would enable the selling of their long-term bonds to the government since they would lose on yield if they held it for more time.

    So how will it enable the bank to sell their existing securities and how will they lose yield on securities that they have already purchased ?

  2. Sir, the relation between higher market price of government bonds leading to lesser yield for the investor is understood. But how does the lesser yield in long term government bonds results in the banks lowering its interest rates on long term loans is not understandable to me. Why would lesser yield on GOVERNMENT BOND, result in decrease in interest rates of LONG-TERM LOANS, issued by commercial banks?
    (Operation Twist query)

  3. On government securities issued for SLR C.Banks get profit at maturity. When in the midway banks need money and RBI loans them at repo rate and they repurchase the same bill later but before maturity.
    My question is, will banks get the promised amount of regular treasury bill at maturity or at reverse repo rate or their maturity will increase to 91 days after repurchase?

    • Dear user, we are experiencing some technical glitch and the issue has been notified to Amazon AWS Support team, they are working on this issue, and we will get back to you, as the issue is fixed. thanks.

    • Dear user, we are experiencing some technical glitch and the issue has been notified to Amazon AWS Support team, they are working on this issue, and we will get back to you, as the issue is fixed. thanks.

    • Dear user, we are experiencing some technical glitch and the issue has been notified to Amazon AWS Support team, they are working on this issue, and we will get back to you, as the issue is fixed. thanks.

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