The yield in yesterdays auction of 91-day T bills fell to 7.52 per cent from 8.10 per cent in the previous week. Money market dealers who were expecting the cut off to be in the region of 7.5-7.6 attributed the fall in yields to the easy liquidity position.
With banks looking for short deployment avenues and the calls ruling at less than one per cent, the issue was oversubscribed by nearly 4.5 times. While the cut-off was fixed at Rs 98.16 the weighted average price was Rs 98.18. The RBI received 84 competitive bids for Rs 1,979 crore and one non-competitive bid to the tune of Rs 100 crore.
