Also Read: Bond yields spike amid bets of interest rates staying higher for longer; how will it impact Indian stock markets? -The surge in bond yields came after RBI Governor Shaktikanta Das said, while announcing monetary policy, that the central bank plans to auction bonds through open market operations (OMO) to manage liquidity. OMO is a term which refer to purchase or sales of government securities in the open market by the RBI.
-The RBI Governor added that the timing and quantum of such operation will depend upon evolving liquidity conditions. The OMO sales will be done through auction process, and timing and quantum of such operation will depend upon evolving liquidity conditions, according to Das.
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