RBI raised ₹24,000 crore through treasury bill auctions

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RBI Treasury Bill Auction

Highlights

RBI raised a total of ₹24,000 crore through the treasury bill auction, with a cut-off yield of 5.2603% for the 91-day, 5.5005% for the 182-day, and 5.7887% for the 364-day bills.
The demand for competitive bids in all three tenures was several times higher than the notified amount, with bids received amounting to ₹32,155.700 crore for the 91-day, ₹13,949.650 crore for the 182-day, and ₹31,465.000 crore for the 364-day periods.
The auction results indicate that the yield curve has progressively steepened, reflecting the market's expectation of higher returns for longer short-term maturity papers.

This article was translated from the original. Read the original version by our correspondent here.

Auction Results and Yield Levels

Reserve Bank of India’s Reserve Bank of India press release 2026-2027/475 states that the notified amount is set at ₹12,000 crore for the 91-day Treasury Bill, ₹6,000 crore for the 182-day Treasury Bill, and ₹6,000 crore for the 364-day Treasury Bill. For all three tenors, total demand from competitive bids remains well above the notified amount.

The 91-day Treasury Bill received 110 competitive bids totaling ₹32,155.700 crore, of which 59 bids were accepted and ₹11,400 crore was allotted. Its cut-off price was 98.7055 and yield 5.2603%, while the weighted average price was 98.7088 and weighted average yield was 5.2467%.

The 182-day Treasury Bill received 68 competitive bids totaling ₹13,949.650 crore, of which 28 bids were accepted and ₹5,700 crore was allotted. Its cut-off price was 97.3305, yield 5.5005%, weighted average price 97.3376, and weighted average yield 5.4855%.

The 364-day Treasury Bill received 115 competitive bids totaling ₹31,465.000 crore, but only 3 bids were accepted and ₹5,700 crore was allotted. In this category, the cut-off price was 94.5422, yield 5.7887%, weighted average price 94.5494, and weighted average yield 5.7807%.

Demand Trends and Market Impact

The data shows that investor demand remains strong across all three maturities, especially in the 91-day and 364-day papers, where competitive bids received were several times higher than the notified amount. This indicates that banks, institutional investors, and other eligible participants continue to maintain active interest in short-term government securities.

Partial allotment occurred in only one competitive bid each, with allotment percentages recorded at 9.5800% for the 91-day, 19.0500% for the 182-day, and 11.6667% for the 364-day. Demand also remained in the non-competitive category, with ₹4,000 crore accepted for the 91-day, ₹1,100 crore for the 182-day, and ₹1,450 crore for the 364-day.

The yield curve shows a sequential increase from the 91-day to the 364-day tenor, reflecting the market’s expectation of higher yields for longer short-term maturities. These auction results serve as an important indicator for near-term government borrowing costs and trends in domestic rates.

Our previous report discussed steps taken by the RBI and the government to attract foreign capital, such as tax exemptions for foreign investors on government bonds, expansion of the Fully Accessible Route, and liquidity-boosting measures like FCNR(B)/forex swaps. It also noted that these measures could somewhat ease balance of payments and funding pressures, although challenges like foreign portfolio outflows and rupee weakness may persist.

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