RBI Sets Cut-Off Yields for ₹24,000 Crore Treasury Bill Auction as One-Year Yield Tops 6%

The Reserve Bank of India (RBI) concluded its weekly auction of short-term sovereign paper on September 16, 2026, setting the cut-off yields for the issuance of ₹24,000 crore worth of Treasury bills (T-bills). The auction saw firm institutional demand across all three tenors—91-day, 182-day, and 364-day—with cut-off yields extending up to 6.0386% for the one-year paper.

Conducted on the central bank's core banking solution platform, E-Kuber, the auction followed the multiple-price method as part of the Government of India’s ongoing short-term market borrowing programme. The settlement of the allotted securities is scheduled for Thursday, September 17, 2026.

Auction Breakdown and Yield Details

According to official RBI data, the central bank offered ₹9,000 crore under the 91-day tranche, ₹8,000 crore under the 182-day tranche, and ₹7,000 crore under the 364-day tranche, aggregating to ₹24,000 crore.

Bidding across all three categories comfortably outstripped the notified issuance:

• 91-Day T-Bills: The RBI received competitive bids totaling ₹24,176.50 crore against the notified ₹9,000 crore. The cut-off price was set at ₹98.7007, translating to an implicit cut-off yield of 5.2801%. The weighted average yield for this tenor stood at 5.2673%. The central bank accepted ₹8,550 crore in competitive bids with a partial allotment ratio of 13.9165%.
• 182-Day T-Bills: The half-year segment drew competitive bids worth ₹16,118.75 crore against an offer size of ₹8,000 crore. The cut-off price came in at ₹97.2128, fixing the cut-off yield at 5.7500%, while the weighted average yield was 5.7167%. Competitive bids accepted amounted to ₹7,600 crore, with a partial allotment percentage of 74.0885%.
• 364-Day T-Bills: For the one-year maturity, the RBI received ₹16,171.00 crore in competitive bids against the ₹7,000 crore on offer. The cut-off price settled at ₹94.3200, taking the yield above the 6% mark to 6.0386%. The weighted average yield stood at 6.0113%. Competitive bids accepted were ₹6,650 crore, resulting in a partial allotment ratio of 35.4286%.

Non-competitive bids from state governments, eligible provident funds, and retail investors were accommodated outside the notified competitive allotment in line with standard issuance guidelines.

Market Dynamics and Impact on Investors

The auction results highlight steady liquidity conditions within the Indian banking sector alongside an upward-sloping money market curve. While demand for short-term liquidity was evident in the heavy oversubscription for the 91-day bill, institutional participants demanded higher returns for longer tenors, pushing the 364-day paper above the 6% threshold.

For Indian fixed-income investors, treasury desks, and mutual funds, Treasury bill yields serve as the benchmark for pricing commercial paper (CPs), certificates of deposit (CDs), and ultra-short-duration debt schemes. The stable uptake across all segments signals that institutional players remain confident in deploying liquidity at prevailing sovereign yield levels while continuing to watch broader macro indicators, including domestic inflation and the RBI's liquidity stance.

Tags: Reserve Bank of India Indian Debt Market Treasury Bills Government of India Money Market