RBI auctions 91-day T-bills on July 11
Published July 12th, 2007
RBI auctioned 91-day T-bills, today, on Jul. 11, 2007 which was oversubscribed.
The notified amount for the auction was Rs 20 billion, of which Rs 15 billion was a market stabilization scheme (MSS) amount. The multiple price-based auction for the bills remained oversubscribed thanks to the banking system being flushed with ample liquidity. RBI received 131 competitive bids worth Rs 72.53 billion for the bills. However, it accepted only 34 bids for the notified amount.
The cut-off price determined at Rs 98.74 offered a ytm (yield to maturity) of 5.1183% on Jul. 11. On the previous auctioned conducted on July 4, the cut-off price for the same tenure of t-bills was ytm of 6.1908%, even lower than 7.3937% received on June 27, showing a declining trend in the interest rates.
The weighted average price worked out to Rs 98.78 on July 11.
The partial allotment percentage of competitive bids was 22.39 from 10 bids.
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