Image Source: Business Standard
India successfully raised ₹340 billion via auctions of 91-day, 182-day, and 364-day Treasury Bills. The Reserve Bank of India reported slightly lower yields compared to the previous auction, signaling strong demand and investor confidence. The issuance supports short-term government financing needs while reflecting stable liquidity conditions.
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Key Highlights
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364-Day T-Bills: India sold ₹80 billion of 364-day Treasury Bills at a cut-off price of ₹94.7230, with yields at 5.5863%, marginally lower than 5.5997% in the previous auction.
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182-Day T-Bills: The government raised ₹120 billion through 182-day Treasury Bills at ₹97.3262, with yields easing to 5.5096% from 5.5361% earlier.
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91-Day T-Bills: India issued ₹140 billion of 91-day Treasury Bills at ₹98.6959, with yields at 5.2998%, down from 5.3176% in the last auction.
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Total Fundraising: Combined, the auctions mobilized ₹340 billion, reinforcing the government’s short-term financing strategy.
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Investor Sentiment: The slight decline in yields reflects robust demand and liquidity stability, with investors showing confidence in India’s debt instruments.
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Market Context: Treasury Bill auctions are a key tool for the Reserve Bank of India to manage liquidity and fund short-term government obligations, while offering investors safe, short-duration instruments.
Why It Matters
The successful auction of Treasury Bills highlights India’s ability to raise funds efficiently while maintaining investor confidence. Marginally lower yields suggest strong demand and stable liquidity conditions, reinforcing the resilience of India’s financial markets amid global uncertainties.
Sources: Economic Times, Business Standard, Mint, Moneycontrol
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