The Reserve Bank of India (RBI) has scheduled a ₹23,000 crore Treasury bill auction for Wednesday, Nov. 18, setting the size and maturity mix of the Indian government’s next short-term borrowing round.
The RBI’s Nov. 13 notice allocates ₹8,000 crore to each of the 91-day and 182-day maturities and ₹7,000 crore to 364-day bills. Together, the tranches make up the full notified amount. Settlement is due Thursday, Nov. 19.
The Government of India’s quarterly issuance calendar, released Sept. 25 in consultation with the RBI, already included the Nov. 18 sale with the same amounts and maturity split. It also lists another Treasury bill auction for Nov. 25. The calendar says the government and the RBI may change auction amounts or timing with notice, depending on requirements, market conditions and other factors.
The central bank will use a price-based, multiple-price auction. The RBI permits noncompetitive bids from designated foreign central banks, qualifying Indian provident funds, state governments, union territories with legislatures and other bidders it approves. Those allocations are outside the notified amount. Retail investors may also submit noncompetitive bids, including through RBI Retail Direct. Their allocation is capped at 5% of the notified amount.
At the Nov. 11 auction, the RBI recorded cutoff yields of 5.8681% on 91-day bills, 6.5183% on 182-day bills and 6.6394% on 364-day bills. The RBI says it will announce results for the Nov. 18 auction on the day of the sale; successful bidders must pay at settlement on Nov. 19.
