The Government will be borrowing about 47 per cent less at ₹2.21 lakh crore in the second quarter of FY22 against ₹4.68 lakh crore in the first quarter via weekly Treasury Bill auctions.
The central bank, in a statement, said: “After reviewing the cash position of the Central Government, Government of India, in consultation with the Reserve Bank of India, has decided to notify the amounts for the issuance of Treasury Bills for the quarter ending September 2021.”
As per the calendar, the Government will be borrowing about 53 per cent of the total amount via 91-days T-Bill auctions; 24 per cent via 182-days T-Bills and 23 per cent via 364-days T-Bills.
Market experts say since more than 50 per cent of the total Government borrowing in Q2 is via 91-days T-Bills, RBI probably wants the yields at the short-end to go up.