Yields Mixed As India Sells 190 Billion Rupees In T-Bill Auction Trio

India’s short-term money market saw a nuanced signal on interest-rate expectations as the government, via the Reserve Bank of India, raised 190 billion rupees through three Treasury bill auctions. The sale comprised 70 billion rupees of 91-day T-bills, 60 billion rupees of 182-day paper and another 60 billion rupees of 364-day securities.

Cut-off yields showed a marginal firming at the longer end of the T-bill curve, even as shorter maturities witnessed a small softening. The 364-day T-bill yield edged up to about 5.54 percent from roughly 5.50 percent at the previous auction, suggesting slightly higher term premia. In contrast, the 182-day cut-off eased to around 5.48 percent versus 5.50 percent earlier, and the 91-day yield slipped to nearly 5.26 percent from 5.28 percent at the last sale, pointing to comfortable near-term liquidity conditions.

Key Highlights:

• Auction Size: 364 day T-bills 60 billion rupees sold at a price of about 94.7656 rupees.
• One Year Yield Move: 364 day cut-off yield around 5.5387 percent, up from about 5.5044 percent in the previous auction.
• Mid-Tenor Sale: 60 billion rupees of 182 day T-bills placed at roughly 97.3423 rupees, with yield softening to about 5.4755 percent from 5.4961 percent.
• Short-Tenor Paper: 70 billion rupees of 91 day T-bills sold at around 98.7061 rupees, with yield slipping to about 5.2579 percent versus 5.2780 percent earlier.
• Macro Signal: The pattern indicates stable policy rate expectations, mild upward bias on the 1-year tenor, and supportive liquidity at the shorter end.

Sources: Reserve Bank of India Treasury bill auction