India to auction ₹28,000 crore in reissued government bonds

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28,000 Crore Securities Auction

Highlights

The Government of India will conduct an auction for the re-issuance of ₹17,000 crore for 6.68% GS 2040 and ₹11,000 crore for 7.43% GS 2076 on June 25, 2026.
The auction will be conducted on the RBI's e-Kuber platform using the multiple price method, where when-issued trading will be possible from June 23 to June 25, 2026.
Up to 5% of the notified issue will be allocated to non-competitive bidders, and retail investors can participate through the Retail Direct portal.

This article was translated from the original. Read the original version by our correspondent here.

Auction Structure and Timeline

According to the press release from the Reserve Bank of India, this sale will be conducted through the multi-price method at the Reserve Bank’s Mumbai office. The notified issue size is ₹17,000 crore for 6.68% GS 2040 and ₹11,000 crore for 7.43% GS 2076, with settlement scheduled for June 29, 2026.

Both competitive and non-competitive bids will be submitted electronically on the RBI’s e-Kuber system on June 25, 2026. Non-competitive bids will be accepted from 10:30 AM to 11:00 AM, and competitive bids from 10:30 AM to 11:30 AM, with results announced the same day.

For the additional competitive underwriting segment, primary dealers can submit bids from 9:00 AM to 9:30 AM. “When Issued” trading in these securities will also be permitted from June 23, 2026 to June 25, 2026.

Impact on Market Participation and Debt Management

This issuance is part of the central government’s market borrowing program to raise long-term funding and offers investors an opportunity to participate in papers maturing in 2040 and 2076. The re-issuance format generally helps enhance liquidity in existing bond lines, facilitating smoother trading in the secondary market.

Under RBI’s operational guidelines, up to 5% of the notified issue of each security may be allocated to eligible individuals and institutions under the non-competitive bidding facility. Retail investors can also place bids through the Retail Direct portal, while successful securities will be credited to SGL or CSGL accounts and will be eligible for repo and non-resident investment as per prevailing regulations.

Our earlier report discussed the easing of oil and fertilizer prices due to prospects of a U.S.-Iran agreement and its positive impact on India’s macroeconomic situation. It also highlighted RBI’s measures to facilitate dollar flows, the state of the agricultural sector amid risks like the monsoon, and signs of policy preparedness and resilience despite medium-term pressures related to AI/demographics.

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