India treasury bills drew cutoff yields about 20 basis points higher than at the previous successful auction in late October 2026, after the Reserve Bank of India cancelled a sale the week before.
India treasury bills auction results
The cutoff yield was 5.93% for 91-day bills, 6.54% for 182-day bills and 6.69% for 364-day bills. The RBI had cancelled an auction in the week of October 21 because yields sought were high.
Treasury bills are short-term government debt. The RBI’s guide to treasury bills explains that they are issued at a discount and redeemed at face value, rather than paying interest.
Liquidity pressure and bond yields
A primary-dealership trader said tighter liquidity and high oil prices had increased short-term funding pressure, prompting traders to demand a higher liquidity premium. Traders said bill yields had reached their highest levels in nearly two years.
System liquidity was in surplus by around ₹35,000 crore, down from a large surplus the previous month. The daily average surplus in October so far was ₹2.6 lakh crore, compared with ₹7.8 lakh crore in September. India’s 10-year government bond yield closed at 7.44% on Wednesday, October 28.
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