The Reserve Bank of India recently released the latest RBI treasury bills auction results for 91-day, 182-day, and 364-day T-bills. Overall, the auction attracted strong investor demand across all three tenors. Here is a clear breakdown of what happened.
Key Auction Results at a Glance
The RBI notified amounts of ₹9,000 crore, ₹8,000 crore, and ₹7,000 crore for the 91-day, 182-day, and 364-day bills respectively. However, competitive bids received were far higher, totalling ₹23,597.82 crore, ₹23,460.45 crore, and ₹23,241.70 crore. This shows robust appetite from market participants for short-term government paper.
For the 91-day bill, the RBI set a cut-off yield (YTM) of 5.3542% at a price of ₹98.6827. Meanwhile, the 182-day bill carried a cut-off yield of 5.6098%, and the 364-day bill came in at 5.7650%. Therefore, yields rose gradually with tenor, reflecting normal short-term market conditions.
Additionally, the weighted average yields (WAY) came in slightly lower than cut-off yields. The 91-day WAY stood at 5.3427%, the 182-day at 5.5964%, and the 364-day at 5.7466%. As a result, most accepted bids priced very close to the cut-off levels.
What the RBI Treasury Bills Auction Means for Investors
The RBI accepted competitive bids worth ₹8,550 crore, ₹7,600 crore, and ₹6,650 crore for the three tenors. Partial allotment applied to a small number of bids at the margin. For example, the 91-day category saw partial allotment at 59.62% for two bids at the cut-off price.
Non-competitive bids also drew solid interest. The 91-day bill alone received non-competitive bids worth ₹6,742.97 crore, of which the RBI accepted ₹6,727.04 crore. However, the 182-day and 364-day tenors attracted much smaller non-competitive amounts of ₹1,200 crore and ₹350 crore respectively.
This RBI treasury bills auction confirms steady demand for short-term sovereign instruments. Investors continue to view T-bills as safe, liquid options in the current rate environment. Therefore, yields at these levels remain attractive relative to other short-duration alternatives in the Indian money market.
Source: RBI Press Releases
