RBI raises ₹24,000 crore in Treasury Bill auction

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RBI Treasury Bill auction

Highlights

RBI raised a total of ₹24,000 crore in the auction of 91-day, 182-day, and 364-day Treasury Bills, with strong demand across all tenors.
The cut-off prices were ₹98.7086, ₹97.3544, and ₹94.6761 respectively, while the yield to maturity was set at 5.2476%, 5.4499%, and 5.6387%.
In both competitive and non-competitive categories, allocation was partial, and competitive demand for the one-year Treasury Bill was significantly higher than the notified amount.

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

Auction Results and Allocation Details

According to RBI press release 2026-2027/527, the notified amounts for the 91-day, 182-day, and 364-day Treasury Bills were ₹12,000 crore, ₹6,000 crore, and ₹6,000 crore respectively. The amount received in competitive bids was ₹30,225.550 crore for 91-day, ₹22,303.650 crore for 182-day, and ₹23,780.150 crore for 364-day bills, reflecting strong demand across all tenors.

The cut-off prices were ₹98.7086 for 91-day, ₹97.3544 for 182-day, and ₹94.6761 for 364-day bills. The corresponding yield to maturity was set at 5.2476%, 5.4499%, and 5.6387% respectively.

In competitive bids, RBI accepted ₹11,400 crore through 42 bids for 91-day, ₹5,700 crore through 30 bids for 182-day, and ₹5,700 crore through 2 bids for 364-day bills. The partial allocation percentages were 95.3900 for 91-day, 58.1040 for 182-day, and 94.8333 for 364-day bills.

The weighted average price was ₹98.7114 for 91-day, ₹97.3580 for 182-day, and ₹94.6761 for 364-day bills. The corresponding weighted average yields were recorded at 5.2360%, 5.4423%, and 5.6387% respectively.

Market Demand and Liquidity Signals

In the non-competitive category, 6, 5, and 3 bids were received for the 91-day, 182-day, and 364-day bills respectively, amounting to ₹1,714.404 crore, ₹1,115.444 crore, and ₹316,458 crore. Of these, the accepted amounts were ₹1,700 crore, ₹1,100 crore, and ₹300 crore respectively.

The partial allocation percentage in the non-competitive category was 97.6556 for 91-day, 95.1040 for 182-day, and 94.7993 for 364-day bills. The results indicate that investor participation in short-term government securities remains broad-based, while competitive demand for the longer one-year Treasury Bill is also significantly higher than the notified amount.

Our earlier report discussed the rationale of 'high capital cost' behind the high valuations in the Indian stock market, where the nearly 7% risk-free rate on 10-year government bonds and additional risk premium push up the expected returns for equities. The article also noted that limited domestic capital options and more attractive global yields allow foreign investors to benefit from high valuations, while return expectations for domestic investors become more challenging.

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