India accepts 91 bids at 2040 sale

India accepts 91 bids at 2040 sale

The Government of India (GoI) has announced the re-issue of the 6.68% Government Security 2040 for a notified amount of ₹16,000 crore, with an option to retain up to ₹2,000 crore in additional subscriptions. The auction, scheduled for March 6, 2026, will use the multiple price method, allowing both competitive and non-competitive bids to be submitted electronically via the Reserve Bank of India’s e-Kuber system. This issuance is part of the GoI's ongoing efforts to manage its debt portfolio and secure long-term funding amid evolving market conditions.

Separately, the RBI recently conducted a State Government Securities (SGS) auction on March 2, 2026, allocating ₹44,330 crore against a notified amount of ₹43,130 crore. Competitive bids totaling ₹2,07,027.237 crore were received, with cut-off yields ranging between 6.91% and 7.7037%. Major states like Karnataka, Maharashtra, and Tamil Nadu raised significant funds through multiple securities, reflecting robust investor demand for state-backed instruments.

In a prior auction on August 1, 2025, the 6.68% GS 2040 bond attracted ₹38,490 crore in competitive bids, with a cut-off yield of 6.6985% and a weighted average yield of 6.6942%. The bond was priced marginally below par at ₹99.86, indicating strong market confidence. These developments underscore the resilience of India's debt markets, with both central and state government securities continuing to draw substantial participation from institutional and retail investors.