The RBI rejected all bids for 91-day, 182-day, and 364-day Treasury bills despite high demand, as benchmark bond yields hit 7.44 percent amid ongoing pressure in the government securities market.

RBI Treasury Bill Auction Update

New Delhi [India], October 21 (ANI): The Reserve Bank of India (RBI) on Wednesday accepted no bids in its auction of 91-day, 182-day and 364-day Treasury bills, despite receiving competitive bids exceeding the notified amounts across all three maturities. The development comes as the yield on India's benchmark 10-year government bond rose to around 7.44 per cent on Wednesday, up approximately four basis points from the previous session, reflecting continued pressure in the government securities market.

Auction Details and Market Context

According to the RBI's auction results, the central bank had notified borrowings of Rs 8,000 crore through 91-day Treasury bills, Rs 8,000 crore through 182-day bills and Rs 7,000 crore through 364-day bills, taking the total notified amount to Rs 23,000 crore. However, the auction result showed no competitive bids accepted across any of the three maturities. The RBI also accepted no non-competitive bids, with the results showing no allotment under either category.

Breakdown of Received Bids

For 91-day Treasury bills, the RBI received 67 competitive bids amounting to Rs 15,366.60 crore, against the notified amount of Rs 8,000 crore. It also received 63 competitive bids worth Rs 18,925.50 crore for 182-day bills and 75 bids worth Rs 11,352.50 crore for 364-day bills. Despite the bids received, the auction recorded no accepted amounts, and no cut-off yields or weighted average yields were reported for the three securities, according to the RBI release dated October 21. The central bank also received non-competitive bids worth Rs 12,028.76 crore for 91-day Treasury bills, Rs 1,712.42 crore for 182-day bills and Rs 1,683.57 crore for 364-day bills. None of these bids was accepted.

Benchmark Bond Performance

The benchmark 10-year government bond yield has risen around 40 basis points over the past month and approximately 90 basis points over the past year, according to market data. Treasury bills are short-term government securities issued with maturities of 91, 182 and 364 days. The RBI's auction results did not specify a reason for the absence of allotments. (ANI)

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