{
  "id": 15990415,
  "title": "RBI turns away all bids at treasury bill sale amid bond selloff",
  "url": "https://urgent.news/2026/10/22/rbi-turns-away-all-bids-at-treasury-bill-sale-amid-bond-selloff",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-22T03:01:26.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/rbi-turns-away-all-bids-at-treasury-bill-sale-amid-bond-selloff/article71609928.ece"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) refused to accept any bids for a treasury bill sale, marking the first time in seven months that an entire auction was canceled. The government planned to raise ₹23,000 crore ($2.4 billion) through the sale of the short-term notes, maturing within a year. RBI, which oversees the government's debt, disclosed that no bids had been accepted, without elaborating on the reason behind the rejection. Rajeev Pawar, head of treasury at Ujjivan Small Finance Bank, suggested that the likely reason for the rejection is the bids would have offered higher yields due to increased investor demand for better returns. The market is also speculating about additional interest rate hikes by the RBI, which could impact shorter-term notes. Benchmark 10-year bond yields surged around 24 basis points this month, reaching their highest since March 2023, as rising oil prices heighten inflation risks for India and increase the chances of further monetary tightening by the RBI. The selloff has been more significant in shorter-maturity bonds, with five-year yields jumping 30 basis points since the end of September. This market volatility is expected to push treasury bill yields higher, according to Puneet Pal, head of fixed income at PGIM India Mutual Fund. The RBI's recent measures to curb inflation risks stemming from excess banking liquidity have also impacted sovereign debt. The bank has drained liquidity worth more than ₹1 lakh crore through bond sales and executed large-scale forex swaps since last month to absorb a flood of funds from a diaspora deposit program. As of October 20, the banking system's surplus liquidity stood at ₹570 billion, significantly lower than the ₹5 lakh crore mark at the beginning of the month.",
  "summary": "This marks the first time since late March that an entire sale of treasury bills was cancelled",
  "key_points": [
    "RBI canceled all bids for ₹23,000 crore treasury bill sale",
    "Higher yields and potential rate hikes likely reasons",
    "Bond yields surged 24 basis points, five-year yields 30 basis points"
  ],
  "editors_take": "The total rejection of treasury bill bids signals a growing disconnect between government borrowing needs and investor appetite as rising inflation risks and liquidity tightening drive bond yields higher.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}