The Reserve Bank of India recently released the full auction results for the 6.94% Government Security maturing in 2036. The RBI G-Sec auction drew strong investor demand, with total competitive bids far exceeding the notified amount. This signals robust appetite for long-term government bonds in the current market.
Key Details of the 6.94% GS 2036 Auction
The RBI notified an auction amount of ₹34,000 crore for this government security. However, competitive bids received totalled ₹83,440 crore across 430 bids — more than twice the notified amount. As a result, the auction was heavily oversubscribed, reflecting strong demand from institutional investors.
The cut-off price was set at ₹101.50, with a yield-to-maturity (YTM) of 6.7275%. Additionally, the weighted average price came in slightly higher at ₹101.51, giving a weighted average yield of 6.7261%. The RBI accepted 171 competitive bids worth ₹33,962 crore. Partial allotment applied to 43 bids at a rate of 95.4860%.
Non-Competitive Bids and Primary Dealer Underwriting
On the non-competitive side, the RBI received five bids totalling ₹37.616 crore. All five non-competitive bids were accepted in full. Therefore, total allotment under this segment faced no partial cuts.
For underwriting, the RBI notified ₹34,000 crore, and primary dealers accepted the full underwriting obligation. Meanwhile, there was no devolvement on primary dealers, indicating a smooth and successful auction process. This outcome further confirms healthy demand for medium-to-long-term government securities.
What This Means for Investors
The strong oversubscription of this RBI G-Sec auction suggests that investors remain confident in India’s fiscal outlook. Additionally, the cut-off yield of 6.7275% offers a competitive return for risk-averse institutional investors. For example, insurance companies and provident funds typically seek such long-duration bonds for liability matching. Overall, the clean auction with no devolvement points to a stable bond market environment in India.
Source: RBI Press Releases
