Business · Markets · 2 hrs ago
RBI accepts higher yields at latest treasury bill auction
India’s central bank accepted higher yields at its latest treasury bill auction, after cancelling the previous week’s sale.
Treasury bills are short-term government debt that matures in less than a year.
The yields were about 20 basis points above the previous successful auction, with the 91-day bill at 5.93% and the 364-day bill at 6.69%.
The RBI had cancelled the earlier auction because yields were high.
Tighter liquidity and high oil prices are adding pressure on short-term funding and raising inflation concerns.
Traders said these pressures have led them to expect possible interest rate increases, but the RBI did not announce a rate change in the information provided.
The Reserve Bank of India accepted treasury bill cutoff yields about 20 basis points above those at the previous successful auction.
The 91-day bill yield was 5.93%, the 182-day yield was 6.54%, and the 364-day yield was 6.69%.
The RBI had cancelled the auction in the week of October 21 because yields were about 15 basis points above the previous week.
Traders cited tighter liquidity and high oil prices as factors increasing short-term funding pressure and pushing yields higher.
- Who
- The Reserve Bank of India accepted the auction yields.
- What
- It accepted treasury bill cutoff yields about 20 basis points higher than at the previous successful auction.
- When
- The article was published on October 29, 2026. The auction date is not stated.
- Where
- India.
- Why
- Traders cited tighter liquidity and high oil prices, which increased short-term funding pressures and prompted demand for a higher liquidity premium.
This story does not have two clearly opposing sides.
The RBI cancelled a treasury bill auction because yields were about 15 basis points higher than the previous week.
The RBI accepted cutoff yields about 20 basis points above those at the previous successful auction.
- 91-day cutoff yield
- 5.93%
- 182-day cutoff yield
- 6.54%
- 364-day cutoff yield
- 6.69%
- Yield increase
- About 20 basis points above the previous successful auction
- System liquidity
- Surplus of around ₹35,000 crore
What people are saying
Liquidity tightening and high oil prices have intensified short-term funding pressures, prompting traders to demand a higher liquidity premium and triggering higher yields in the t-bill