INR 32,000 crore raised in RBI's government securities auction

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Highlights

RBI raised a total of INR 32,000 crore in the auction of 6.03% GS 2029, 6.68% GS 2033, and 7.24% GS 2055, with notified amounts of INR 11,000 crore, INR 11,000 crore, and INR 10,000 crore respectively.
The cut-off yields for all three securities were 6.1988%, 6.6203%, and 7.3941% respectively, while market demand remained strong through competitive bids.
Devolvement was nil and the auction was successful for the government's borrowing needs with full participation of primary dealers in all bid categories.

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

Auction Results and Pricing

As per Reserve Bank of India press release 2026-2027/696, the notified amounts for the auctions of 6.03% GS 2029, 6.68% GS 2033, and 7.24% GS 2055 were INR 11,000 crore, INR 11,000 crore, and INR 10,000 crore respectively. The amount of competitive bids received for these three securities was INR 25,919 crore, INR 31,294 crore, and INR 25,317.25 crore respectively.

The cut-off price and yield were 99.61 and 6.1988% for 6.03% GS 2029, 100.31 and 6.6203% for 6.68% GS 2033, and 98.16 and 7.3941% for 7.24% GS 2055. The weighted average price and yield were recorded at 99.69 and 6.1640%, 100.33 and 6.6165%, and 98.22 and 7.3889% respectively.

The amount of accepted bids in the competitive category was INR 10,996.355 crore for the 2029 bond, INR 10,990.015 crore for the 2033 bond, and INR 9,987.916 crore for the 2055 bond. The partial allocation percentages were 28.2420%, 85.9915%, and 33.9433% respectively.

Demand, Non-Competitive Bids, and Market Signals

In the non-competitive category, 4 bids and INR 3,645 crore were received for 6.03% GS 2029, 5 bids and INR 9,985 crore for 6.68% GS 2033, and 6 bids and INR 12,084 crore for 7.24% GS 2055, all of which were fully accepted. This indicates that participation from small non-competitive investors was limited in the auction, while the main demand came from competitive bids.

Under underwriting, acceptance equal to the notified amount of INR 11,000 crore, INR 11,000 crore, and INR 10,000 crore was taken from primary dealers for all three securities, but devolvement was NIL in any security. This result shows that the government's borrowing needs received adequate support from the market and the auction was completed without any additional burden.

In our previous report, we had informed about the changes to be implemented by NSE Indices Limited in the Nifty Fixed Income indices from July 20, 2026, under which two Rajasthan SDL securities were to be included in separate bond and SDL indices. It was mentioned that such inclusion could increase index-based demand, weight, and market visibility of the related securities, which is an important signal for passive funds and investors allocating based on benchmarks.

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