What changed
The auction results for 91-day, 182-day, and 364-day Treasury bills were published. Notified amounts were ₹12,000 crore, ₹6,000 crore, and ₹6,000 crore respectively. Competitive bids exceeded notified amounts significantly, leading to partial allotments.
What it means for you
Short-term yields remain in the 5.24%-5.64% range, reflecting current liquidity conditions. The oversubscription indicates strong demand for government paper. Banks should note the yield curve steepness between 91-day and 364-day tenors.
What you must do
- Review your T-bill portfolio duration in light of current yield levels.
- Monitor liquidity conditions for potential impact on short-term rates.
- Use these cut-off yields as benchmarks for pricing short-term loans and deposits.
Who it affects
Treasury departments of banks, Primary dealers, Corporate treasuries investing in money market instruments
What were the cut-off yields for each tenor?
91-day: 5.2476%, 182-day: 5.4499%, 364-day: 5.6387%.
How much was the notified amount for 91-day T-bills?
₹12,000 crore.