Now Reading: RBI T-bill auction draws strong bids; 91-day yield 5.26%
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RBI T-bill auction draws strong bids; 91-day yield 5.26%
The Reserve Bank of India auctioned Treasury Bills worth Rs 24,000 crore on Wednesday across three tenors. The 91-day T-bill cut-off yield settled at 5.2624%, the 182-day at 5.5390%, and the 364-day…
The Story in Brief
The Reserve Bank of India auctioned Treasury Bills worth Rs 24,000 crore on Wednesday across three tenors. The 91-day T-bill cut-off yield settled at 5.2624%, the 182-day at 5.5390%, and the 364-day at 5.7094%. Competitive bids worth Rs 66,809 crore were received, far exceeding the notified amount, and the full notified amount was accepted for each tenor. Non-competitive bids of Rs 13,960 crore were also accepted on a partial basis. The weighted average yields came in slightly lower, at 5.2533% for 91-day, 5.5257% for 182-day, and 5.6945% for 364-day.
The Indian Opinion
Some commentary has painted these yields as a sign of excessive liquidity or weak growth. In fact, the auction saw bids over 2.5 times the notified amount, showing robust investor confidence in short-term government paper. The slight drop in yields from the previous week reflects normal market clearing, not distress. The real test will come next month when the RBI conducts the quarterly review of its liquidity management stance.
Sources (2): rbi.org.in, rbi.org.in (2)
This story was synthesised by AI from the 2 sources linked above.
