₹18,963.348 crore allocated in RBI state government securities auction

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RBI state bond allocation

Highlights

A total of ₹18,963.348 crore was allocated in the RBI state government securities auction held on October 27, 2026.
Tamil Nadu, Bihar and Uttar Pradesh received full allocations for bonds across various maturities, while Gujarat, Jharkhand and Kerala received no allocations.
Cut-off yields ranged from 7.9593% to 8.28%. Investor demand remained strong, but several states accepted limited funds to control borrowing costs.

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

Auction results and state acceptances

According to the RBI press release, states took different approaches in the auction held on October 27, 2026, based on their borrowing needs and market yields. A total of 1,452 competitive bids worth ₹79,748.400 crore were received, along with 180 non-competitive bids worth ₹1,334.997 crore.

Bihar received the full allocations of ₹1,000 crore and ₹2,000 crore for its 2035 and 2041 securities, respectively. Tamil Nadu received full allocations of ₹2,500 crore, ₹2,500 crore, ₹2,000 crore and ₹2,000 crore for its 2041, 2046, 2051 and 2056 securities, respectively, while Uttar Pradesh raised ₹500 crore, ₹1,000 crore and ₹2,000 crore through its 2032, 2042 and 2051 securities.

For its 9-year 2035 security, Assam accepted only ₹606.733 crore against a notified amount of ₹1,000 crore. Nagaland received a partial allocation of ₹256.615 crore against ₹300 crore for its 9-year 2035 security. Chhattisgarh received full allocations of ₹600 crore each for its 2040 and 2048 securities, while Himachal Pradesh received the full allocation of ₹400 crore for its 2049 security.

By contrast, Gujarat accepted no amount for its reissued 2035 and 2038 securities. Jharkhand received no allocation for its 2033 security, Kerala for its 14-year security, and Sikkim for its 2030 security. Sikkim, however, received the full allocation of ₹200 crore for its 2042 security. Uttarakhand received a near-full allocation of ₹500 crore for its 2038 security, comprising ₹499.903 crore through competitive bids and ₹0.097 crore through non-competitive bids.

Yield levels and impact on the borrowing market

Cut-off yields at the auction varied by maturity and state. The cut-off yield was 8.15% for Assam 2035, 8.18% for Bihar 2035 and 8.2811% for Bihar 2041. For Tamil Nadu’s 2041, 2046, 2051 and 2056 securities, the respective yields were 8.2597%, 8.2767%, 8.2656% and 8.2537%.

The Uttar Pradesh 2032 security had a cut-off yield of 7.9593%, indicating a relatively lower borrowing cost among the securities listed. The cut-off yields for Uttar Pradesh 2042 and 2051 were 8.2789% and 8.2772%, respectively. Securities such as Chhattisgarh 2040 and 2048, Himachal Pradesh 2049, Manipur 2042 and Uttarakhand 2038 had cut-off yields in the range of approximately 8.23% to 8.25%.

The results show that investor demand in the state borrowing market remains strong, but states are not accepting funds at every bid level. States that accepted limited amounts or nothing even at higher yields signaled a firm stance on borrowing costs, while larger borrowers raised substantial funds from the market to advance their financing plans.

Our previous report on the World Bank discussed talks on expanding the scope of emergency financing and debt-support options for 30–40 countries facing debt pressures amid rising energy and fertilizer prices. Against the backdrop of the heavy external debt repayments facing developing economies in 2026, high borrowing costs and rising risks, the article highlighted efforts to mobilize private capital and the focus on debt sustainability and crisis support at the Bangkok meetings.

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