MUMBAI: Short-term treasury bill rates dropped to their lowest levels in nearly a year and a half after an unprecedented cut in treasury bills supply boosted prospects of higher systemic liquidity and demand for debt, traders said.
On Thursday, RBI cancelled two treasury bills auctions worth Rs 20,000 crore ($2.4 billion) each, scheduled for this month.Traders said such a move is unparalleled with cancellations earlier being done only on auction days largely due to RBI’s discomfort with rates.