Borrowing costs increase at 91-day Treasury Bill sale

The country’s borrowing costs rose at an auction of 91-day bills and fell at a sale of 182-day debt, central bank data showed.

The government sold a planned Rs 50 billion ($1 billion) of 91-day bills at a cut-off price of Rs 99.19 per Rs 100 face amount, or a yield of 3.2754 per cent, compared with 3.1532 per cent at the previous sale on May 6, the Reserve Bank of India said in a faxed statement in Mumbai.

It also auctioned a planned Rs 20 billion of 182-day bills at a cut-off price of Rs 98.29, or a yield of 3.4891 per cent, compared with 3.5514 per cent on April 28.

Traders in a Bloomberg News survey had forecast a yield of 3.29 per cent for the 91-day securities and 3.56 per cent for the six-month notes.