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Investors seek 91-day T-bills, betting on rates rise on inflation push
Investors favour shorter tenures during periods when interest rates are expected to rise, avoiding locking up funds over long durations during which returns would increase.
Investors have piled into the shortest-dated Treasury instrument-the 91-day T-bill-on the expectation that rates will begin to move higher as inflationary pressures re-emerge.
The sale of Treasury bills as leaned towards the shortest dated instrument, where the 91-day paper has received the highest bids from investors in at least the last two auctions.