The Reserve Bank of India (RBI) injected Rs 2.5 lakh crore into the banking system through repo auctions, raising questions from the State Bank of India (SBI) about its liquidity management while the central bank pursues a calibrated tightening stance to address inflation. In its Ecowrap report, SBI said the RBI moved its operating rate to the upper end of the policy corridor, but found the liquidity injection hard to reconcile with its focus on controlling inflation. The RBI also cancelled all Treasury bill auctions. SBI expects Indian government bond yields to stay elevated due to high crude oil prices, noting the spread against US Treasury yields reached 250 basis points. SBI also continued to advocate widening the LAF corridor, arguing it could act as an automatic stabiliser during periods of uncertainty.
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The Reserve Bank of India (RBI) accepted no bids in its Wednesday auction of 91-day, 182-day and 364-day Treasury bills, even though competitive bids exceeded the notified amounts for all three maturities. The central bank had notified Rs 23,000 crore in total (Rs 8,000 crore, Rs 8,000 crore and Rs 7,000 crore respectively), but received competitive bids worth Rs 15,366.60 crore, Rs 18,925.50 crore and Rs 11,352.50 crore, and non-competitive bids were also not accepted. The benchmark 10-year government bond yield rose to around 7.44%, up about 4 basis points from the previous session, and has climbed about 40 basis points over the past month and about 90 over the past year. The RBI did not give a reason for the absence of allotments.
- RBI accepts no bids in treasury bill auction , 10 - Year bond yield climbs to 7 . 44 %
The Reserve Bank of India accepted no bids in its Wednesday auction of 91-day, 182-day and 364-day Treasury bills, even though competitive bids exceeded the notified amounts totalling Rs 23,000 crore. For the 91-day bills alone, the RBI received 67 competitive bids worth Rs 15,366.60 crore against a notified Rs 8,000 crore, and it accepted none of the non-competitive bids. The RBI did not specify a reason for the absence of allotments. The move comes as the benchmark 10-year government bond yield rose to around 7.44%, up roughly 40 basis points over the past month and about 90 basis points over the past year.
- RBI accepts no bids in treasury bill auction , 10 - Year bond yield climbs to 7 . 44 %
The Reserve Bank of India accepted no bids on Wednesday in its auction of 91-, 182- and 364-day Treasury bills, even though competitive bids exceeded the notified amounts. The total notified amount was Rs 23,000 crore. Competitive bids were 67 worth Rs 15,366.60 crore for 91-day bills, 63 worth Rs 18,925.50 crore for 182-day bills and 75 worth Rs 11,352.50 crore for 364-day bills, and no non-competitive bids were accepted either. The release gave no reason. Meanwhile, the 10-year government bond yield rose about four basis points to around 7.44%, up roughly 40 basis points over the past month and 90 over the past year.
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