RBI Treasury Bill Auction Sees Strong Demand

Mumbai, May 28, 2025: The Reserve Bank of India (RBI) successfully concluded its latest Treasury Bill auction on Wednesday, with strong investor participation across all three tenors: 91 days, 182 days, and 364 days. The auction attracted bids totalling over ₹85,000 crore, far surpassing the combined notified amount of ₹19,000 crore, underscoring steady market confidence amid stable interest rate expectations.

₹9,000 Crore Allotted for 91-Day T-Bills at 5.62% Yield

The 91-day T-Bill segment saw robust demand with 97 competitive bids worth ₹30,938.65 crore, exceeding the notified amount by more than 3.4 times. The cut-off price was fixed at ₹98.6182, corresponding to a yield of 5.6200%. Out of these, ₹8,981.01 crore was allotted through 32 competitive bids, with partial allotments in two bids at 57.38%. The weighted average yield was slightly lower at 5.6106%.

182-Day Bills Allocated at 5.63% Cut-Off Yield

For the 182-day tenor, 68 bids worth ₹24,765.76 crore were received, against a notified amount of ₹5,000 crore. The cut-off price stood at ₹97.2700, indicating a yield of 5.6287%. A total of ₹4,982.06 crore was allotted through 12 successful bids, including one partial allotment at 45.93%. The weighted average yield was marginally below the cut-off at 5.5979%.

364-Day T-Bills Draw Strong Bids; Cut-Off at 5.63%

The 364-day auction attracted the highest number of bids—105 bids totalling ₹29,968.70 crore. Against the notified ₹5,000 crore, ₹4,948.20 crore was allotted through 13 bids. The cut-off price was ₹94.6850, translating to a yield of 5.6288%. Partial allotments were made in three bids with a 62.49% allotment ratio. The weighted average yield was 5.6265%.

Non-Competitive Segment Fully Subscribed

All five non-competitive bids per tenor were accepted fully, with allotments as follows:

₹2,818.99 crore for 91-day T-Bills

₹2,017.94 crore for 182-day T-Bills

₹175.17 crore for 364-day T-Bills

Summary

The auction’s strong oversubs͏cription and t͏he small gap͏ betwe͏en ͏the c͏ut-off ͏and average yields show that ther͏e is a ͏solid͏ ͏demand͏ for short-ter͏m government ͏debt͏. Inv͏estors seem to be choosing these͏ sa͏fe ͏optio͏ns,͏ encouraged by stable͏ econ͏omic c͏ondi͏tions and ͏steady policy r͏ates. These results also highlight the RBI’s ongoing efforts to carefully manage liquidity and maintain a steady yield curve.

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REF: https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR42216F481EBAA3042BC804ED0D24D9EA073.PDF