T-bill auction sees strong demand; cut-off yields ease across tenors

The Government of India's Treasury Bill auction held on 22 April 2026 witnessed robust demand across maturities, with yields softening marginally as investor appetite remained firm.

The government had notified Rs 12,000 crore for 91-day T-bills, and Rs 6,000 crore each for 182-day and 364-day papers. Bidding interest was strong, particularly in the shorter tenors, reflecting continued demand for near-term instruments amid evolving rate expectations.

For the 91-day T-bill, bids worth Rs 33,670.2 crore were received against the notified Rs 12,000 crore. The cut-off yield came in at 5.2150%, with a corresponding price of Rs 98.7165. The weighted average yield stood slightly lower at 5.1916%, indicating aggressive bidding. The government accepted Rs 11,400 crore through competitive bids, while non-competitive bids worth Rs 20,762.96 crore were also allotted.

In the 182-day segment, the auction drew bids worth Rs 26,290.2 crore against Rs 6,000 crore on offer. The cut-off yield was set at 5.4700% (price Rs 97.3449), while the weighted average yield stood at 5.4616%. Competitive bids worth Rs 5,700 crore were accepted, alongside Rs 14,700 crore of non-competitive allotments.

The 364-day T-bill saw relatively moderate demand, with bids worth Rs 12,150.2 crore for the Rs 6,000 crore issue. The cut-off yield stood at 5.5990% (price Rs 94.7116), while the weighted average yield came in at 5.5797%. Competitive allotment stood at Rs 5,700 crore, with Rs 300 crore accepted under the non-competitive segment.

Partial allotments were seen across tenors, most notably in the 364-day paper where a high allotment ratio of 76.2% reflected concentrated bidding at the cut-off level.