The central government has rejected all bids for 364-day and 182-day treasury bills and only accepted 91-day bills, which has signalled discomfort with increasing short-term yields, as the Monetary Policy Committee decision is pending and will be announced on 5th June 2026. RBI rejects bids when the yield is high, and this shift is done to reduce interest rates. This decision comes as the Monetary Policy Committee is discussing the interest rates. SBI Chairman CS Setty said this decision to pause interest rates would stabilize the economy, as the spread between 364-day treasury bill yields and the policy rate has widened to 78 basis points.
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