T-bill yields continue to surge, at the same level as 10-year bond

Around a year ago, the yield on the 10-year bond was more than 220 bps higher than that on the 364-day T-bill

Cut-off yields on treasury bills issued by the government continued to rise at primary auctions, with this week’s sale seeing the yield on the 364-day security being set at the same level at which the Centre’s new 10-year bond closed on Wednesday.

At Wednesday’s auction, worth Rs 39,000 crore, the cut-off yields set at the 91-day and 182-day T-bills were each 12 basis points (bps) higher than those set at the previous week’s sale. The cut-off yield for the 364-day T-bill was set 13 bps higher at 7.39 per cent. Bond prices and yields move inversely.

On Wednesday, the government’s