Now Reading: RBI T-bill auction: ₹24,000 crore sold, yields up to 5.71%
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RBI T-bill auction: ₹24,000 crore sold, yields up to 5.71%
The Reserve Bank of India auctioned ₹24,000 crore in treasury bills on August 14. The 91-day T-bill got a cut-off yield of 5.26%, the 182-day 5.54%, and the 364-day 5.71%. Bids exceeded…
The Story in Brief
The Reserve Bank of India auctioned ₹24,000 crore in treasury bills on August 14. The 91-day T-bill got a cut-off yield of 5.26%, the 182-day 5.54%, and the 364-day 5.71%. Bids exceeded notified amounts across all tenors.
Separately, RBI conducted an underwriting auction for ₹32,000 crore of government securities. Primary dealers committed to underwrite new bonds maturing in 2029, 2033, 2055, and the 7.50% Sovereign Green Bond 2056. Underwriting commission rates ranged from 0.23 paise to 0.58 paise per ₹100.
The Indian Opinion
The T-bill yields remain anchored, reflecting ample liquidity. Some commentators paint rising yields as a sign of fiscal stress, but these are short-term rates driven by RBI’s liquidity operations. The underwriting auction saw low commissions, indicating primary dealers see little risk in absorbing government paper. The real test will come when the 10-year benchmark yield moves above 7%, watch that number.
Sources (3): rbi.org.in, rbi.org.in (2), rbi.org.in (3)
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
