T-bills yield fall on liquidity rise, banks park over Rs 40k cr with RBI

The cut-off yields on the Treasury bills at auction on Wednesday were set lower than the previous week due to a rise in the overall liquidity of the system, dealers said. Banks parked Rs 41,283 crore with the Reserve Bank of India on Tuesday as compared to Rs 26,016 crore on Monday.

The Reserve Bank of India (RBI) set the cut-off yield on the 91-day, 182-day, and 364-day Treasury bills at 6.82 per cent, 7.02 per cent, and 7.03 per cent, respectively. The cut-off yield on the 91-day and 364-day Treasury bills was set 4 basis points lower, whereas the 182-day cut-off yield was set 2 basis points lower than the last week.

The yields had surged last week as banking liquidity had slipped into deficit mode on the back of Incremental Cash Reserve Ratio (I-CRR) and Goods and Services Tax (GST) payments.

According to RBI data, the central bank had injected Rs 23,111 crore on 23 August, followed by Rs 23,644 crore and Rs 15,552 crore on 22 August and 21 August, respectively.