RBI released the auction results for the 7.06% GS 2041 and 7.43% GS 2076 government securities

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RBI government securities auction results

Highlights

The 7.06% GS 2041 auction received 369 competitive bids worth Rs 64,287.950 crore, while the cut-off price was Rs 96.18 and the yield was 7.4898%.
The 7.43% GS 2076 auction received 177 competitive bids worth Rs 27,815.000 crore, with a cut-off price of Rs 95.33 and a yield of 7.8015%.
The full issuance of both securities saw strong market demand, underwriting was limited to the notified amounts, and there was no devolvement on primary dealers.

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

Auction results and pricing

According to press release 2026-2027/1297 from the Reserve Bank of India, the auctions of 7.06% GS 2041 and 7.43% GS 2076 saw strong investor demand. For 7.06% GS 2041, 369 competitive bids worth Rs 64,287.950 crore were received, while 177 bids worth Rs 27,815.000 crore were received for 7.43% GS 2076.

The cut-off price for 7.06% GS 2041 was Rs 96.18, corresponding to a yield of 7.4898%, while the weighted average price was Rs 96.19 and the weighted average yield was 7.4886%. The cut-off price for 7.43% GS 2076 was Rs 95.33, corresponding to a yield of 7.8015%, while the weighted average price was Rs 95.49 and the weighted average yield was 7.7882%.

RBI allocated Rs 22,915.377 crore in 7.06% GS 2041, accepting 106 competitive bids, while 30 bids received a partial allocation of 81.3307%. For 7.43% GS 2076, 63 competitive bids worth Rs 12,991.249 crore were accepted, and one bid received a partial allocation of 72.9992%.

Market demand and underwriting signal

In the non-competitive segment, five bids worth Rs 84.623 crore were received and fully accepted for 7.06% GS 2041. Three non-competitive bids worth Rs 8.751 crore were received for 7.43% GS 2076, and these were also fully accepted.

Underwriting for both securities was equal to the notified amounts, including Rs 23,000 crore for 7.06% GS 2041 and Rs 13,000 crore for 7.43% GS 2076. There was no devolvement on primary dealers, indicating that the issues received sufficient market support.

Our previous report detailed rating action on certain matured debt instruments of State Bank of India (SBI), including the withdrawal of ratings on matured instruments following the reaffirmation of their credit profile. The article noted that this move was primarily related to regulatory compliance and instrument-specific circumstances, while SBI's strong market presence underscores the context of confidence and oversight in India's debt market.

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