RBI sets Treasury bill auction cut-offs, 364-day yield at 6.4891%
Amid fresh signals on short-term government borrowing in the Indian money market, the Reserve Bank of India has released the cut-off results for the 91-day, 182-day and 364-day Treasury bill auctions. The full notified amount is accepted across all three tenors, completing total borrowing of Rs 23,000 crore through this auction.
Highlights
- The Reserve Bank of India accepted the full notified amounts of Rs 8,000 crore, Rs 8,000 crore and Rs 7,000 crore, respectively, in the 91-day, 182-day and 364-day Treasury bill auctions.
- The cut-off yield for the 364-day Treasury bill was 6.4891%, compared with 5.7281% and 6.2896% for the 91-day and 182-day bills, respectively.
- Higher yields on longer-tenor T-bills and acceptance of the full notified amount are key indicators of short-term government borrowing costs and money market sentiment.
This article was translated from the original. Read the original version by our correspondent here.
Auction results and accepted amounts
According to a press release by the Reserve Bank of India, the total notified face value for the 91-day, 182-day and 364-day Treasury bill auctions is Rs 8,000 crore, Rs 8,000 crore and Rs 7,000 crore, respectively. The central bank accepts the full notified amount in all three categories.For the 91-day T-bill, the cut-off price is set at Rs 98.5920, implying a yield of 5.7281%. For the 182-day T-bill, the cut-off price stands at Rs 96.9592 and the yield at 6.2896%, while the 364-day T-bill has a cut-off price of Rs 93.9220 and an implied yield of 6.4891%.
Market signals and impact on borrowing
These results indicate that yields on longer-maturity T-bills remain higher than those on short-term securities, reflecting investors' tenor-based pricing. The 364-day T-bill yield of 6.4891% is the highest in this auction.These Treasury bill auction cut-off levels are key indicators of short-term government borrowing costs and money market sentiment. Acceptance of the full notified amount also shows that the RBI is completing its planned short-term borrowing programme at the targeted size during this period.
Our previous report discussed higher estimates for states' market borrowing and SGS issuance for Q3 FY2027. It highlighted trends such as gross SGS issuance based on the RBI's auction calendar, net issuance after redemptions, and contributions from major states, as well as the expansion of benchmark issuance strategy (BIS).
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