Mumbai, Jan. 20 -- nterest rates on short-term government borrowings inched up at the treasury bills auction, in a sign that short-term rates are moving closer to the policy corridor following the Reserve Bank of India's (RBI's) liquidity normalization measures.

On Wednesday, the cut-off yield on the 91-day T-bill stood at 3.32%, from 3.28% in the previous round. The cut-off yield on the 182-day T-bill was at 3.54% from 3.45%, while the 364-day T-bill stood at 3.62% from 3.58% in the previous round.

On Tuesday, the weighted average call money rate rose to 3.45%, closer to the 3.35-4.0% interest rate corridor. "Following RBI's announcement of normalization of liquidity, these changes were expected. Broadly liquidity will remain and the s...