The Reserve Bank of India (RBI) has scheduled ₹23,000 crore in Treasury bill sales for Nov. 11, including an ₹8,000 crore 182-day tranche after it accepted none of that maturity in its previous auction.
The RBI’s Nov. 6 notice sets the offer at ₹8,000 crore for 91-day bills, ₹8,000 crore for 182-day bills and ₹7,000 crore for 364-day bills, totaling ₹23,000 crore. Successful bidders must pay on Nov. 12, according to the announcement.
The RBI’s published results for Nov. 4 show it accepted all ₹8,000 crore offered in the 91-day maturity at an implicit yield of 5.8970%, and ₹7,000 crore in 364-day bills at 6.6485%, while making no allocation in the middle tenor. EconoTimes previously covered the Nov. 4 allocation results.
Moneycontrol reported that market participants connected the absence of 182-day awards to investor demands for higher yields, citing banking-system liquidity and expectations of further rate increases as contributing factors.
Government of India rules define Treasury bills as securities with maturities of up to 364 days. Investors buy them below face value and receive face value at maturity, without interim coupon payments.
For the Nov. 11 sale, the RBI will use a price-based, multiple-price auction through its E-Kuber system. The notice provides for both competitive and noncompetitive bidding on auction day, with results scheduled for that day.
The notice also allows state governments, Union Territories with legislatures, eligible Provident Funds and designated foreign central banks to bid noncompetitively, with allocations outside the notified amount. Individuals may bid noncompetitively through the RBI’s Retail Direct portal, subject to a retail allocation cap of 5% of the notified amount.
The RBI’s quarterly calendar, published Sept. 25, lists the same dates and amounts but says they may change in response to government requirements, market conditions and other factors. Results are due Nov. 11, followed by payment on Nov. 12.
