India's RBI Offloads ₹24,000 Crore T-Bills, Yields Approach 6%
India's central bank completed a Treasury Bill auction, selling ₹24,000 crore across three maturities. Strong demand pushed yields for longer-dated bills close to 6%.
RBI Concludes T-Bill Auction
The Reserve Bank of India (RBI) concluded its latest Treasury Bill (T-Bill) auction on 2 September 2026. It sold ₹24,000 crore worth of these short-term government debt instruments. The auction covered three tenors: 91-day, 182-day, and 364-day maturities.
The RBI reported competitive bids significantly exceeded the notified amounts across all tranches, demonstrating solid market appetite for government paper.
Yields Reflect Market Demand
The 91-day T-Bills cleared at a cut-off yield of 5.2599%, with a weighted average yield (WAY) of 5.2525%. For the 182-day T-Bills, the cut-off yield reached 5.6588%, and the WAY was 5.6189%. The longest tenor, the 364-day T-Bills, saw a cut-off yield of 5.9090% and a WAY of 5.8887%. These yields, particularly for the longer maturities, are nearing the 6% mark.
These auction results suggest that the Indian market is pricing in elevated interest rate expectations. The robust demand for T-Bills indicates ample liquidity within the financial system. Higher T-Bill yields can influence other short-term borrowing costs for Indian corporations.
This also provides investors with attractive, low-risk returns on government securities, potentially drawing capital towards fixed-income assets.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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