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

On Wednesday, the cut off yield on 91 day T-bill stood at 3.32%, higher than 3.28 in the previous round. Similarly the cut off yield on 182 day T-bill stood at 3.54% higher than 3.45% and 364 day T-bill stood at 3.62% higher than 3.58% in the previous round.

On Tuesday, the weighted average call money rate rose to 3.45% to get closer to the 3.35-4.0% policy rate corridor.

"Following the RBI announcement of normalization of liquidity, these changes were expected. Going forward, broadly ...