RBI cancels 182-day, 364-day treasury bill sale, traders interpret move as rate signal
2 min read
During the past five weeks, yields rose by 34 basis points for the 91‑day bill, 26 basis points for the 182‑day bill and 43 basis points for the 364‑day bill.
| Photo Credit:
FRANCIS MASCARENHAS
The Reserve Bank of India turned down every bid for the 182‑day and 364‑day Treasury bills in Wednesday’s auction, offering only the 91‑day paper—a move market participants viewed as a rate signal before the central bank’s policy announcement on Friday. Below are the key points:
* The RBI allotted the 91‑day bill at a 5.56 % yield, whereas a Reuters survey had expected the cut‑off yields for the 182‑day and 364‑day bills to be 5.76 % and 6.06 %—levels not seen in over a year.
* This marks the second occasion in under three months that the RBI has withdrawn a Treasury‑bill offering.
* The previous week the RBI placed the 182‑day and 364‑day bills at 5.73 % and 6.03 %, extending the weekly climb in rates on these short‑term instruments to five consecutive weeks.
* In the past five weeks, yields have increased by 34 basis points on the 91‑day bill, 26 basis points on the 182‑day bill and 43 basis points on the 364‑day bill.
* “This clearly signals a rate move; markets appear to be pricing in steep rate hikes over a short period, even though that may not reflect reality,” said a primary‑deal trader.
* The spread between the 364‑day bill and the RBI policy rate widened to 78 basis points last week, a level not observed since four years prior.
Released on June 3, 2026
About Author
