From Financialexpress · Christina Titus · · 1m
RBI rejects all T-bill bids as investors seek higher yields
RBI rejects all T-bill bids as investors push for higher yields.
In brief
RBI rejects all T-bill bids as investors push for higher yields. RBI rejected all T-bill bids in auction as banking liquidity tightens from GST outflows. Originally reported by Financialexpress.
RBI rejects all T-bill bids
The Reserve Bank of India rejected all bids in its T-bill auction on Wednesday.
Investors seek higher yields
Investors demanded higher yields amid tightening banking liquidity driven by GST outflows.
Liquidity surplus drops
The liquidity surplus averaged rs 3.39 lakh crore in October, down from rs 7.77 lakh crore in September.
VRR auctions continue
The RBI conducted a seven-day variable rate repo auction to manage liquidity pressures.
Liquidity tightens further
Banking system liquidity tightened as surplus dropped to rs 48,304 crore, its lowest in three months.
Market expects more VRR
Market participants expect the RBI to continue VRR auctions to ease liquidity pressures and keep rates aligned with the policy repo rate.
The one thing
RBI rejected all T-bill bids in auction as banking liquidity tightens from GST outflows.
