91 day T-Bills have been slowly showing signs of stress, as the weekly auctions show. Yields are now at 8.81%, just a little short of the 8.89% high made in October.
It’s important to note that while most auctions till December were of 4,000 cr., the auctions in Jan were for Rs. 6,000 cr, and the one on Feb 1 was for 9,000 cr. The size is pre-announced; we will have only 9,000 cr. worth 91 day T-Bill auctions for each week in February, and then Rs. 8,000 cr. for each week in March.
The other T-Bills – 182-day and 364-day – are going at lower yields.
Consider that the 10 yr. bond closed at 8.14% yesterday, and you’ll see how inverted the yield curve is!
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