What changed
The auction showed a sharp rise in competitive demand, especially for the 91‑day issue, where bids were more than double the notified amount. Cut‑off yields edged higher than the weighted‑average yields, indicating tight liquidity. Non‑competitive participation remained modest but was almost fully allotted.
What it means for you
Higher demand and tighter yields suggest banks and primary dealers are seeking short‑term safe assets, potentially reflecting cautious market sentiment. The modest increase in yields may raise funding costs for borrowers relying on Treasury Bill repo rates. Banks should monitor the impact on their liquidity buffers and repo pricing.
What you must do
- Review your short‑term funding strategy in light of the higher T‑Bill yields.
- Adjust repo rates on Treasury Bill collateral to reflect the new market yields.
- Ensure sufficient high‑quality liquid assets to meet regulatory liquidity norms.
- Communicate the yield changes to corporate clients with floating‑rate exposures.
Who it affects
Scheduled commercial banks, Primary dealers, Corporate borrowers with repo‑linked loans, Liquidity management teams
What were the final yields for each tenor?
The 91‑day T‑Bill yielded 5.2603%, the 182‑day yielded 5.5005%, and the 364‑day yielded 5.7887% at the cut‑off price.
How much of the competitive bids were accepted?
Competitive bids of ₹11,400.000 cr (91‑day), ₹5,700.000 cr (182‑day) and ₹5,700.000 cr (364‑day) were accepted, representing partial allotments of 9.5800%, 19.0500% and 11.6667% of the total bids respectively.
Did non‑competitive bidders receive their full request?
Non‑competitive bids were largely filled, with 97.1196% of the 91‑day, 96.3574% of the 182‑day and 93.5343% of the 364‑day requests allotted.