RBI Raises Rs 21,000 Crore in T-Bill Auction Amid Strong Investor Demand

The Reserve Bank of India (RBI) successfully conducted its weekly Treasury Bills (T-Bills) auction on Wednesday, mobilizing an impressive Rs 21,000 crore through 91-day, 182-day, and 364-day instruments. The auction, characterized by robust demand, saw total bids surpass Rs 82,000 crore against the Rs 21,000 crore offered, indicating a sustained investor appetite for short-term government securities.

The RBI released data showing it received competitive bids worth Rs 25,879.30 crore for 91-day T-Bills, with only Rs 9,976.47 crore accepted, and a cut-off yield of 5.3970%. Meanwhile, the 182-day T-Bills attracted Rs 30,191.50 crore in bids with Rs 5,992.57 crore accepted at a yield of 5.5206%. For 364-day T-Bills, the auction fetched Rs 26,370 crore in bids, with Rs 4,988.96 crore accepted, yielding 5.5673%.

Partial allotments were made for select competitive bids, while non-competitive bids were fully accepted across all three tenures. The auction is part of the government's regular borrowing program to manage short-term funding, with the RBI as its debt manager conducting these auctions weekly. Notably, the RBI accepted six non-competitive bids for the 91-day category amounting to Rs 16,273.53 crore.

(With inputs from agencies.)