The Reserve Bank of India has released the full RBI government securities auction results for two bonds — the New GS 2041 and the 7.43% GS 2076. Both auctions attracted strong bidding interest, reflecting steady demand from institutional investors.
Key Auction Details
For the New GS 2041, the RBI notified an amount of ₹17,000 crore. It received 276 competitive bids totalling ₹49,600 crore, accepting 141 bids worth ₹16,967.11 crore. The cut-off yield came in at 7.0600%, while the weighted average yield (WAY) settled slightly lower at 7.0540%.
Meanwhile, the 7.43% GS 2076 had a notified amount of ₹11,000 crore. It attracted 169 competitive bids amounting to ₹29,469 crore. However, only 38 bids were accepted, worth ₹10,991.21 crore. The cut-off yield for this bond stood at 7.6212%, with a WAY of 7.6116%.
Additionally, non-competitive bids were fully accepted in both auctions. The GS 2041 saw five non-competitive bids worth ₹32.89 crore, while the GS 2076 received four bids totalling ₹8.79 crore. All non-competitive bids were allotted in full.
What the RBI Government Securities Auction Means for Markets
Primary dealers underwrote the full notified amounts for both securities — ₹17,000 crore and ₹11,000 crore respectively. As a result, there was no devolvement on primary dealers in either case. This outcome signals a smooth auction process and healthy market appetite.
The partial allotment percentages tell an interesting story. For GS 2041, 44.29% of bids at the cut-off price were accepted across 81 bids. For GS 2076, the figure was higher at 61.21% across just four bids. Therefore, competitive pressure was notably stronger for the shorter-dated 2041 bond.
These results suggest that investors currently prefer slightly lower yields on medium-term government paper. The strong bid-to-cover ratios in both auctions also indicate robust liquidity in the government bond market. For example, the GS 2041 attracted nearly three times the notified amount in bids.
Overall, both auctions concluded successfully without any stress. This reinforces confidence in India’s sovereign debt market ahead of the new financial year.
Source: RBI Press Releases
