India successfully auctioned ₹190 billion worth of treasury bills across 91-day, 182-day, and 364-day tenors at marginally lower yields than the previous auction. This reflects steady demand for short-term government debt amid cautious investor sentiment and provides the government with short-term liquidity for fiscal management.
The Reserve Bank of India concluded the auction of treasury bills, raising ₹60 billion each through 364-day and 182-day bills, and ₹70 billion through 91-day bills. The auction saw strong bidding interest with slightly lower yields compared to the prior auction, signaling steady investor confidence in government securities despite prevailing macroeconomic challenges.
Key highlights include:
-
The 364-day treasury bills were sold at ₹94.7377 per ₹100 face value, yielding 5.5699%, down from 5.5875% in the last auction
-
The 182-day treasury bills fetched ₹97.2969 per ₹100, yielding 5.5717%, compared to the previous 5.5899%
-
The 91-day treasury bills were sold at ₹98.6640 per ₹100, yielding 5.4312%, slightly lower than the earlier 5.4485%
-
The lower yields indicate stable demand amid ongoing fiscal prudence and cautious liquidity conditions
-
These bills provide the government with essential short-term funds to meet expenditure needs without disrupting borrowing costs
This auction outcome demonstrates the government’s ability to efficiently manage short-term borrowings while maintaining investor interest in the debt market.
Sources: Reserve Bank of India, Economic Times, Bloomberg, Moneycontrol.