The yield on 91-day treasury bills dipped below the one-day repo rate of 6.50 per cent this week, reflecting the excess liquidity in the system. According to money market dealers, 91-day treasury bill yields have been hovering in the range of 6.44 per cent to 6.48 per cent, a few basis points below the repo rate. The yield on the three-month treasury bill today closed at 6.45 per cent.
The liquidity overhang also drove down the 364-day treasury bill yield today to the level of the repo rate of 6.50 per cent. It lost two basis points from yesterday