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Charts & Analysis

Chart Of The Day: 91-Day T-Bills At Near Record Yields

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.

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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.

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Consider that the 10 yr. bond closed at 8.14% yesterday, and you’ll see how inverted the yield curve is!