The Reserve Bank of India has released the government bond auction results for two securities. The RBI government bond auction covered the 6.53% GS 2031 and the 7.71% GS 2066 papers. Both auctions drew strong investor interest, with bids far exceeding the notified amounts.
Key Auction Details
The RBI notified ₹19,000 crore for the 6.53% GS 2031 bond and ₹14,000 crore for the 7.71% GS 2066 bond. For the 2031 paper, 173 competitive bids worth ₹33,343.80 crore came in — nearly 1.75 times the notified amount. Meanwhile, the 2066 bond attracted 219 competitive bids totalling ₹29,157 crore, showing robust demand from long-term investors.
The cut-off price for the 6.53% GS 2031 was set at ₹96.65, translating to a yield-to-maturity (YTM) of 7.3589%. Additionally, the 7.71% GS 2066 was cut off at ₹97.30, with a YTM of 7.9339%. The weighted average yields settled at 7.3437% and 7.9211% respectively, reflecting steady market pricing.
As a result of heavy oversubscription, partial allotments were made. For the 2031 bond, 97.07% of bids at the cut-off were accepted across 12 bids. However, only 27.80% of the 2066 cut-off bids received allotment, covering just 3 bids.
What the RBI Government Bond Auction Means for Markets
The RBI government bond auction saw full primary dealer underwriting for both securities. Primary dealers absorbed the entire underwriting commitment of ₹19,000 crore and ₹14,000 crore respectively. Importantly, there was no devolvement on primary dealers for either bond, signalling smooth market absorption.
Non-competitive bids added a small but complete allocation. Four non-competitive bids for the 2031 paper totalled ₹5.02 crore, while four bids for the 2066 bond amounted to ₹58.58 crore. Therefore, all non-competitive bids received full allotment without any partial cuts.
Overall, the strong oversubscription across both tenors reflects continued confidence in Indian government securities. Investors are clearly comfortable locking into longer durations, even at current yield levels. This trend supports the government’s borrowing programme for FY 2026-27.
Source: RBI Press Releases
