T-Bill Yields Ease as Demand Stays Firm; RBI Sells ₹190 Bln in Short-Term Debt

The Reserve Bank of India (RBI) completed its latest weekly auction of Treasury bills, raising ₹190 billion through three short-term maturities amid easing yields. Market participants attributed the lower yields to strong liquidity conditions and steady demand from money market funds and banks.

Key Highlights:

91-day bills: ₹70 billion sold at ₹98.7031 per ₹100 face value, implying a yield of 5.2702%, down from 5.3480% at the previous auction.

182-day bills: ₹60 billion raised at ₹97.3409, yielding 5.4785%, lower than 5.5282% earlier.

364-day bills: ₹60 billion sold at ₹94.8048, with a yield of 5.4949%, compared with 5.5450% previously.

Trend: The marginal decline in yields shows improved demand amid expectations that the RBI will maintain a neutral liquidity stance in coming months.

Analysts noted that the softening of short-term yields may continue if liquidity remains adequate and inflation stays within the central bank’s comfort zone.

Source: Reserve Bank of India, Department of Economic Affairs data release.