The Reserve Bank of India (RBI) has announced a higher cut off yield for the 91-day and 364-day treasury bills at 4.95 per cent and 4.97 per cent, respectively.
While the cut off rate for the 91-day bill was increased by 21 basis points, the 364-day yield has been hiked by 17 basis points.
Dealers said the yield increased after the notified amount of the 91-day bill trebled from Rs 500 crore to Rs 1,500 crore.
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However, the notified amount for the 364 day t-bill was constant at Rs 1,000 crore. The cut off rate for the 364-day bill was increased to maintain the upward moving yield curve.
The move is part of the RBI