The Reserve Bank of India (RBI) on Thursday announced its first open market operations (OMO) auction in the last five months.

The central bank said that it would pump up to Rs 12,000 crore via OMO purchase of government securities via an auction route on 4th oof December this year.

The bank also said it would accept the existing 10-year benchmark government bond 8.15 per cent, in a move that may make sure higher success of the announced auction. In addition, the bank will accept government securities maturing in the years of 2018, 2020 and 2027.

Over the past month, yields on the 10-year benchmark government bond slipped by 10 basis points in anticipation of announcement of some liquidity measure by the RBI.

Commenting on the impacts of the OMO announcement, IDBI Bank's treasury head N S Venkatesh said, "We may see yields falling to around 8.15% initially due to the OMO announcement."

For more than a fortnight now, banks have been borrowing more than Rs 1 lakh crore per day from the central bank's liquidity adjustment facility window. The figure is quite beyond the central bank's comfort zone of 1 per cent of net demand as well as time liabilities.

Market analysts are of the view that the most recent move signaled the central bank's proactive approach to maintain liquidity in a bid to ensure credit flows to the economy's productive sectors.