In his unscheduled speech today, the RBI Governor announced second purchase of G-securities of Rs. 35000 crore under G-SAP 1.0 to be conducted on May 20, 2021.
In its April monetary policy statement, in order to address the concern of market participants over rising bond yields, the governor enthused the markets with a new programme called as Government Securities Acquisition Programme (G-SAP) - through which it will purchase government securities worth Rs 1 lakh crore in the first quarter of FY22.
Basically the G-SAP move is aimed at supporting the bond markets which also results in softening of corporate bond yields. On the move 10-year yields have gone down below 6 percent to 5.98 percent.