The Reserve Bank of India (RBI) has released the latest T-Bill auction results for the 91-day, 182-day, and 364-day Treasury Bills. The auction attracted strong demand, with the RBI accepting the full notified amounts across all three tenors.
T-Bill Auction Cut-off Prices and Yields
The RBI notified ₹8,000 crore each for the 91-day and 182-day T-Bills. Additionally, it notified ₹7,000 crore for the 364-day T-Bill. All three tenors received full acceptance, signalling healthy investor appetite in the short-term government securities market.
The 91-day T-Bill was cut off at a price of ₹98.5920, with an implicit yield of 5.7281%. Meanwhile, the 182-day T-Bill was cut off at ₹96.9592, translating to a yield of 6.2896%. The 364-day T-Bill saw a cut-off price of ₹93.9220, with a yield to maturity (YTM) of 6.4891%.
As a result, yields rise steadily as the tenor increases. This reflects the typical upward-sloping yield curve seen in India’s short-term debt market.
What the T-Bill Auction Results Mean for Investors
Treasury Bills are zero-coupon instruments issued by the Government of India. Therefore, they are considered among the safest short-term investment options available. Banks, mutual funds, and institutional investors actively participate in these auctions.
The cut-off yield on the 364-day T-Bill at 6.49% provides a useful benchmark for short-term borrowing costs. For example, money market funds and liquid funds often use T-Bill yields as reference rates. However, retail investors can also access these instruments indirectly through mutual funds.
The full acceptance of notified amounts in this T-Bill auction suggests adequate liquidity conditions in the banking system. Additionally, stable demand at these yield levels indicates that investors remain confident in India’s short-term debt market outlook.
Key Auction Summary
Here is a quick overview of the RBI T-Bill auction results:
- 91-Day T-Bill: ₹8,000 crore accepted | Cut-off price ₹98.5920 | YTM 5.7281%
- 182-Day T-Bill: ₹8,000 crore accepted | Cut-off price ₹96.9592 | YTM 6.2896%
- 364-Day T-Bill: ₹7,000 crore accepted | Cut-off price ₹93.9220 | YTM 6.4891%
The official results were communicated by Ajit Prasad, Deputy General Manager (Communications), RBI. You can view the original release on the RBI website.
Source: RBI Press Releases
