RBI allocated the notified amount of ₹24,000 crore at the set yield in the Treasury Bill auction.

RBI allocated the notified amount of ₹24,000 crore at the set yield in the Treasury Bill auction.
RBI Treasury Bill Auction

The results of the latest phase of Indian short-term government borrowing for 91-day, 182-day, and 364-day Treasury Bill auctions have been announced. For the total notified amount of ₹24,000 crore, investor bids in all three tenors far exceeded the offered amount, highlighting strong demand.

Highlights

  • RBI allocated the total notified amount of ₹24,000 crore at the set price and yield in the auction of 91-day, 182-day, and 364-day Treasury Bills.
  • The cut-off yield for the 364-day Treasury Bill stood at 5.7197%, reflecting higher yield demand for longer-term government securities.
  • Competitive bids for all three bills were much higher than the notified amount, clearly indicating strong investor interest in short-term government securities.

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

Auction Results and Yield Levels

As stated in Reserve Bank of India press release 2026-2027/672, the notified amounts for the 91-day, 182-day, and 364-day Treasury Bill auctions were ₹9,000 crore, ₹8,000 crore, and ₹7,000 crore respectively. Competitive bids received were ₹24,158.450 crore for 91-day, ₹21,309.500 crore for 182-day, and ₹23,935.000 crore for 364-day bills.

The cut-off price and yield were ₹98.6880 and 5.3324% for 91-day, ₹97.2980 and 5.5693% for 182-day, and ₹94.6038 and 5.7197% for 364-day bills. The weighted average price and yield were ₹98.6905 and 5.3221% for 91-day, ₹97.3109 and 5.5420% for 182-day, and ₹94.6326 and 5.6874% for 364-day bills.

The amount of competitive bids accepted was ₹8,982.958 crore for 91-day, ₹7,990.915 crore for 182-day, and ₹6,936.200 crore for 364-day bills. The percentage of partial allotment was 42.8770 for 91-day, 29.1038 for 182-day, and 34.4629 for 364-day bills.

Market Demand and Borrowing Signals

Participation remained strong in the non-competitive category as well, with bids received and accepted at ₹6,335.152 crore for 91-day, ₹809,085 crore for 182-day, and ₹1,263.800 crore for 364-day bills. All bids in this category were accepted with no partial allotment.

Significantly higher competitive bids compared to the notified amount in all three tenors indicate robust investor interest in short-term government securities. Additionally, the higher yield curve for the 364-day security signals that the market is demanding higher yields for longer-tenor Treasury Bills.

Our previous report discussed the sharp rise in India's merchandise trade deficit in June 2026, where import growth far outpaced exports amid high commodity prices. It also projected the current account deficit to widen to 1.5% of GDP in Q1 FY2027, indicating pressure on the external sector.

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