The market was expecting the central bank to hike the yield of short-term T-bills by a few basis points to align it with the 364-day treasury bill yield in the secondary market. "We were expecting the short-term T-bills yields to go up marginally following continuous fall in the gilts prices since the last few days," dealers said.

For the 14-day T-bills yield, the central bank received 12 competitive bids worth Rs 376.40 crore and one non-competitive bid worth Rs 200 crore for a notified amount of Rs 100 crore out of which it accepted one competitive bid worth Rs 100 crore and one non competitive bid worth Rs 200 crore. The cut-off price was pegged at Rs99.70.

For the 91-day T-bills, the central bank received 11 competitive bids worth Rs 137 crore out of which it accepted 8 bids worth Rs 100 crore. Three bids were partially allotment and the partial allotment percentage was 61.54.

Last Friday, the RBI slashed the yields of 14-day treasury bill by 105 basis points to 8.36 per cent and 91-day t-bills by 76 basis points to 8.81 per cent. The main objective of the central bank is to align the already skewed yield curve with the existing yields in the secondary market.