91-day T-bills were rejected again
Bank of Mauritius rejected for a fifth consecutive week all bids for its 91-day Treasury bills on Friday, but sold 1 billion rupees ($35 million) of 182-day and 364-day bills, at a bank rate of 2.54 percent.
Offers for the 91-day paper came to 270 million rupees. The bids ranged between 2.50 percent and 1.37 percent. The central bank was not immediately available for comment.
Yields on the three-month paper sank to a record low of 1.73 at the Feb. 11 auction and none have been sold since.
Mauritius is mulling a cap on how much commercial banks can hold in Treasury bills to encourage them to lend to companies and households instead.
The central bank raised banks' reserve requirements to 7 percent from 6 percent last month, citing the need to tackle excess liquidity.
