On October 22, 2026, the RBI rejected all bids in the 91-day, 182-day, and 364-day Treasury Bill auctions, accepting NIL amounts despite notified issues of ₹23,000 crore. The cut-off prices and yields remained unannounced, signaling a rare market disruption likely due to liquidity stress or policy positioning ahead of monetary committee outcomes.
T-Bill Auctions Cancelled: No Acceptances on October 22
In an unusual development, the Reserve Bank of India (RBI) accepted no bids in the auction of 91-day, 182-day, and 364-day Treasury Bills held on October 22, 2026. The notified amounts were ₹8,000 crore, ₹8,000 crore, and ₹7,000 crore respectively, totaling ₹23,000 crore. Despite receipt of competitive bids aggregating over ₹45,000 crore across tenors, the RBI declared total accepted amount as "NIL", with no cut-off prices or yields disclosed.
This outcome suggests either a strategic decision by the RBI to avoid absorbing higher-cost borrowing amid evolving inflationary expectations or reflects a market-wide reluctance to hold tenor risk pending macroeconomic cues. Auction failures of this nature are rare and typically occur only under significant liquidity misalignment or policy uncertainty.
For banking and financial institutions, this signals caution in government securities market participation and may impact short- to medium-term yield curve dynamics. Legal and compliance teams should monitor upcoming RBI communiqués for potential reissuance instructions or revised terms under Section 31 of the RBI Act, 1934.
