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% as of September 2026. Clean Max Enviro Energy raised ₹2,500 crore via green debt securities. Brent crude oil prices rose to $107.30.

Facts for Prelims

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

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 how global yield fluctuations and domestic liquidity management influence the cost of borrowing for the Indian government and private sector.

Dimensions to cover in your answer

Monetary transmission: Impact of RBI's OMO sales on domestic liquidity and bond yields
Fiscal-monetary nexus: Trade-offs between government bond issuance duration and interest rate volatility
Global spillover: Correlation between US 10-year yields and domestic capital costs

Keywords: Liquidity management · Open Market Operations · Yield curve · Green debt securities · Monetary policy

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