Treasury Bill Auction Reveals Tightening Yields Amid Solid Market Demand
RBI Conducts Treasury Bill Auction: Key Outcomes and Yield Analysis (August 5, 2026)
The Reserve Bank of India (RBI) conducted its latest auction for Treasury Bills on August 5, 2026. The results across various maturities—91-Day, 182-Day, and 364-Day—indicated a stable market environment with specific dynamics observed in competitive and non-competitive bids.The auction saw significant participation from both competitive and non-competitive bidders. The total notified amount was set at ₹7,000 crore for the 364-Day bill, reflecting the diverse supply available to the fixed income investors.
Competitive Bids and Allocation Percentages
Across the three maturities, competitive bids were received in substantial numbers. For the 91-Day bill, 88 bids were recorded, totaling ₹22,102.225 crore. The number of accepted competitive bids for this short maturity stood at 42, amounting to ₹8,550.000 crore.The demand intensity varied across the maturities. For the 91-Day bill, only 1 bid was noted in the partial allotment category (representing 11.5550% of competitive bids). Conversely, the 182-Day bill attracted 5 competitive bids, with a total amount of ₹7,600.000 crore being accepted.
Yield Trends and Cut-off Pricing
The auction results show clear trendlines in terms of yield and cut-off price across the maturity spectrum. The 91-Day Treasury Bill was allotted at a cut-off price of 98.7012, corresponding to a Yield to Maturity (YTM) of 5.2780%.The longer-duration bills showed slightly higher yields. The 182-Day bill’s cut-off price was recorded at 97.3071, with the YTM assessed at 5.5501%. For the longest tenor, the 364-Day Treasury Bill was allotted at a cut-off price of 94.6215, registering a YTM of 5.6998%.
Non-Competitive Bids and Weighted Average Prices (WAP)
Non-competitive bidding demonstrated robust interest, particularly for the short-term instruments. For the 364-Day bill, 4 non-competitive bids were received, with an accepted amount of ₹350.000 crore. The acceptance rate for these long-dated bills remained high at 95.6744%.Weighted Average Prices (WAP) further define the market performance. The WAP for the 91-Day bill stood at a price of 98.7073, corresponding to a Weighted Average Yield (WAY) of 5.2529%. All three maturities recorded similar levels of yield volatility reflected in their respective WAPs.
Market Absorption and Conclusion
The allotment figures confirm that the demand across all categories was largely absorbed by the market. For instance, the non-competitive bids for the 182-Day bill were accepted at a rate of 96.0255%.Overall, the auction data suggests continued stability in the domestic fixed income market. The yields recorded span from 5.2780% to 5.6998%, providing essential benchmarks for short, medium, and long-term investors.
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