India’s Treasury Bill Auction Sees Higher Yields Amid Strong Demand

India’s central bank conducted a significant round of treasury bill auctions, raising a total of ₹290 billion across three maturities. The results highlight both strong investor appetite and a slight uptick in yields, signaling evolving liquidity dynamics and cautious sentiment in the money market.

Key Highlights:

364-Day Bills:

• Amount sold: ₹80 billion
• Cut-off price: ₹94.5865
• Yield: 5.7391%, up from 5.7200% in the last auction.

182-Day Bills:

• Amount sold: ₹120 billion
• Cut-off price: ₹97.2461
• Yield: 5.6793%, compared to 5.6628% previously.

91-Day Bills:

• Amount sold: ₹90 billion
• Cut-off price: ₹98.6474

Market Context:
The marginal rise in yields suggests tightening liquidity conditions and cautious investor positioning. Analysts note that treasury bill auctions remain a key indicator of short-term funding costs and broader monetary trends.

Sources: Reuters, Reserve Bank of India (RBI).