The cut off yield of 91-day and 14-day T-bills are 9.35 per cent and 8.10 per cent respectively.

According to dealers, the market was expecting a slight fall in the t-bills yield. "By reducing the yields of both the short-term t-bills, the central bank is signaling a lower interest rates at the shorter end," said a primary dealer.

According to dealers, in the last 3-days, the short term gilts prices improved marginally by 2-5 paise. "The fall in yields indicate that the market is not willing to subscribe short term instrument at a higher yield," said money market sources.

For its 91-day T-bills auction, the central bank received 22 competitive bids worth Rs 535 crore for a notifiedamount of Rs 200 crore and one non competitive bid worth Rs 500 crore. The central bank accepted 8 bids worth Rs 200 crore out of which two were partially allotted. The central bank received one non competitive bid worth Rs 500 crore.

For its 14-day T-bills auction, the central bank received 10 competitive bids worth Rs 595 crore for a notified amount of Rs 100 crore out of which it accepted only one bid worth Rs 100 crore.

Last Friday, the RBI had lowered the yields of the 91-day T-bills and 14 day T-Bills by 42 and 26 basis points to 9.52 per cent and 8.63 per cent respectively.

According to money market dealers,"currently the appetite for T-bills has increased as market players are not interested in locking their surplus funds in short dated gilts maturing above two-years due to uncertain interest rate movements. Short term T-bills is the only attractive option before them," money market sources said.

In the secondary market, t-bills yield across all maturities have softened by almost 10 basispoints.

According to market sources, the uniform price auction has given a much needed depth to the treasury bills segment, increase the number of players, widen the T-bills market and bring about a lower cut-off yield.