The Reserve Bank on Wednesday rejected all bids for treasury bills offered at auction, as investors demanded yields that were 0.05-0.10 percentage points higher than those seen in previous auctions amid tight liquidity conditions in the banking system, market participants said.
The central bank did not accept any investor bids for 91-day, 182-day and 364-day T-bills. The RBI announced the auction of short-term government securities on February 21.
“Tight liquidity in the banking system has prompted investors to bid 0.05-0.10 per cent higher cut-off yields at the auction, which the RBI rejected,” said Balasubramanian R, head of treasury at Dhanlaxmi Bank.
The Government of India issues treasury bills (T-bills) as money market instruments that function as promissory notes, guaranteeing repayment at a later date.
Typically, banks, primary dealers, retail investors, and institutional investors participate in these auctions.
Treasury bills are short-term borrowing instruments with …​The Reserve Bank on Wednesday rejected all bids for treasury bills offered at auction, as investors demanded yields that were 0.05-0.10 percentage points higher than those seen in previous auctions amid tight liquidity conditions in the banking system, market participants said.
The central bank did not accept any investor bids for 91-day, 182-day and 364-day T-bills. The RBI announced the auction of short-term government securities on February 21.
“Tight liquidity in the banking system has prompted investors to bid 0.05-0.10 per cent higher cut-off yields at the auction, which the RBI rejected,” said Balasubramanian R, head of treasury at Dhanlaxmi Bank.
The Government of India issues treasury bills (T-bills) as money market instruments that function as promissory notes, guaranteeing repayment at a later date.
Typically, banks, primary dealers, retail investors, and institutional investors participate in these auctions.
Treasury bills are short-term borrowing instruments with … ​Latest News [ SOBAN NEWS: International and National ]
