The Reserve Bank of India (RBI) has indicated that it will take all required steps, including resorting to open market operations (OMOs), to ensure sufficient supply of money in the system and ease soaring bond yields.

In its most-recent statement over liquidity management, the central bank assured that it was monitoring liquidity conditions, and that it would take steps as appropriate to ensure adequate supply of money to the productive sectors of the economy.

Currently, the RBI is injecting Rs 1.5 lakh crore into the system on a daily basis through the liquidity adjustment facility, the export credit refinance facility and the marginal standing facility (MSF). Last week, borrowings under MSF alone had shot up to Rs 1.5 lakh crore.

The central bank also revealed that it is currently pumping nearly Rs 1.50 lakh crore into the country's financial system per day through the liquidity adjustment facility, the marginal standing facility and the export credit refinance facility.

But, it admitted that the tightening liquidity conditions could force it to pump more funds into the system. One of the mainy reasons behind the tightening of liquidity is prospective effects of banks' half-yearly account closure. The list of other reasons includes sluggish deposit growth and festival-related pick-up in demand.

Yields on 10-year benchmark government bond have jumped by more than 20 basis points (bps) so far this week.

Meanwhile, the government has plans to borrow Rs 2.35 lakh crore from the central bank in the October to March period, in line with its budgeted market borrowing plan.