The article makes the error of assuming RBI wants lower yields. It’s likely RBI only wants stable yields. That’s why OMO/OT is being calibrated. This is an ad hoc form of yield curve control. From the actions one can surmise that RBI will do what it takes to peg 10Y around 6%. https://t.co/MFckd8936L
— athreya (@athreya49) September 18, 2020
via Twitter https://twitter.com/athreya49
September 18, 2020 at 10:13AM
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