RBI T-bill auction over subscribed
Published February 8th, 2007
he 182 day-T-bill auction held by RBI on Feb. 7 was over-subscribed on the back of improved liquidity in the banking system. The previous auction held on Jan 24 was under-subscribed on account of the tight liquidity condition.
At a multiple price-based auction, RBI received 57 bids worth Rs 37.9 billion for the papers. Out of them, only 12 competitive bids were accepted for the notified amount of Rs 15 billion. A sum of Rs 10 billion was the amount of market stabilization scheme (MSS).
The cut-off price was determined at Rs 96.34, offering a ytm (yield to maturity) of 7.619%. The weighted average price worked out to Rs 96.36.
The partial allotment percentage of competitive bids was 96.77% with 3 bids.
The apex bank did not receive non-competitive bid for this paper.
On the same day, the apex bank also auctioned 91-day T-bills, which was also over-subscribed.
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