T-bill auction devolves on RBI

MUMBAI, July 15: A massive 62.5 per cent of the 364-day treasury bills devolved on primary dealers PDs and the Reserve Bank of India on Wednesday despite the hike in the coupon by 105 basis points 8212; from 8 per cent to 9.05 per cent. The Reserve Bank doubled the notified amount of the gilt from Rs 100 crore to Rs 200 crore.

In a parallel development, for the second time within the span of a week, the Reserve Bank hiked the notified amount for the 91-day T-bills to Rs 200 crore on Wednesday. Last Wednesday, it had hiked the notified amount for the 91-day T-bills to Rs 150 crore from Rs 100 crore.

Out of the Rs 200 crore notified amount at the 364-day T-bills auction, Rs 100 crore devolved on primary dealers and Rs 25 crore on the Reserve Bank.