India's ultra-short-term borrowing costs spike; premium over policy rate hits 4-year high

India's 182-day and 364-day treasury bill yields climbed to 18-month highs at Wednesday's auction, while premiums over the RBI's 5.5% repo rate reached their highest levels since November 2022. Investors are factoring in further monetary tightening following the central bank's recent rate hike and hawkish guidance, market participants said.