Document title: Government Stock - Auction Results: Cut-off
Issuing authority: Reserve Bank of India, Department of Communication
Reference number: Press Release: 2026-2027/538
Date: June 25, 2026
Capital Markets and Flows
The Reserve Bank of India announced the results of two government securities auctions conducted on June 25, 2026. For the GS 2040 series (6.68% coupon) a notified amount of ₹17,000 crore was offered, and the entire amount was accepted. The cut‑off price was 96.71, which corresponds to an implicit yield of 7.0530% at the cut‑off. For the GS 2076 series (7.43% coupon) a notified amount of ₹11,000 crore was offered, also fully subscribed, with a cut‑off price of 98.64 and an implicit yield of 7.5346% at the cut‑off. No devolvement on primary dealers was recorded for either issue, indicating that the allocations were made directly to investors without involving primary dealers.
Liquidity Management
The complete acceptance of the notified amounts implies that the full ₹28,000 crore raised through these auctions will be absorbed by the market, enhancing liquidity management without requiring any additional funding from primary dealers. The absence of devolvement underscores the RBI's reliance on direct investor participation to manage liquidity in the government securities market.
The auction outcomes demonstrate robust demand for government securities, with both series fully subscribed at competitive yields, and the RBI achieving its liquidity objectives without primary dealer involvement.