Returns on government securities are likely to be market-determined as the Reserve Bank of India on Friday asserted that it is not targeting any yield.
"We are not targeting any yield or exchange rate," RBI Governor Bimal Jalan told reporters on the sidelines of Sebi's investor awareness campaign in New Delhi.
The statement assumes significance in the wake of fall in yield of G-secs to historic low on Wednesday but stabilized after the RBI announced two open-market bonds auctions the next day.
"We keep watching the liquidity conditions at all time," Jalan said but declined to comment whether there would be more open market operations.