India’s central bank reported marginal declines in Treasury bill yields during the latest auction. The 364-day T-bill yield fell to 5.5997% from 5.6100%, while the 182-day yield eased to 5.5361% from 5.5581%. The 91-day T-bill yield slipped to 5.3176%. The government sold a total of ₹220 billion worth of bills.
The Reserve Bank of India (RBI) announced results of its latest Treasury bill auction, showing a modest decline in short-term borrowing costs. The auction covered 91-day, 182-day, and 364-day bills, with yields easing slightly compared to the previous auction.
The government successfully raised ₹220 billion through the sale of these instruments, reflecting steady demand from investors amid expectations of stable monetary policy.
Key Highlights
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364-Day T-Bill: Yield at 5.5997% vs. 5.6100% in last auction; ₹80 billion sold at ₹94.71 per bill
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182-Day T-Bill: Yield at 5.5361% vs. 5.5581% previously
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91-Day T-Bill: Yield at 5.3176% vs. 5.3200% previously; ₹140 billion sold at ₹98.6916 per bill
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Market Impact: Slight easing in yields indicates stable liquidity and investor confidence
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Policy Context: Reflects RBI’s calibrated approach to managing short-term borrowing costs
The auction results highlight India’s balanced debt management strategy, with yields showing only minor adjustments, suggesting continued investor appetite for government securities.
Sources: Reserve Bank of India auction data, Reuters, Economic Times