Document title: Result of Yield/Price Based Auction of State Government Securities

Issuing authority: Reserve Bank of India (RBI)

Reference number: Press Release 2026-2027/1392

Date: October 27, 2026

Capital Markets and Flows

The RBI disclosed the outcome of a yield/price based auction of State Government Securities (SGS) conducted on October 27, 2026. A total of ₹23,300 crore of securities were offered across 13 states, of which ₹18,963.348 crore were accepted, representing an overall acceptance rate of approximately 81.3%.

  • Assam: Offered ₹1,000 crore of a 9‑year security; ₹606.733 crore accepted at a cut‑off yield of 8.15%.
  • Bihar: Two tranches were offered – ₹1,000 crore and an additional ₹2,000 crore (re‑issue of 7.66% Bihar SGS 2041 issued on July 22, 2026). Both tranches were fully subscribed at cut‑off yields of 8.18% and 8.2811% respectively, with the latter priced at 94.75.
  • Chhattisgarh: Two re‑issues were offered – ₹600 crore each. Both were fully subscribed at cut‑off yields of 8.2498% (price 96.62) for the 2040 issue and 8.2462% (price 95.74) for the 2048 issue.
  • Gujarat: Two re‑issues were offered – ₹1,000 crore each of 7.96% SGS 2035 (issued Oct 14, 2026) and 8.06% SGS 2038 (issued Oct 21, 2026). No bids were received for either tranche.
  • Himachal Pradesh: Offered ₹400 crore of a 9‑year security (re‑issue of 7.77% SGS 2049 issued June 24, 2026); fully subscribed at a cut‑off yield of 8.2487% (price 95.11).
  • Jharkhand: Offered ₹200 crore of a 9‑year security (re‑issue of 7.30% SGS 2033 issued July 08, 2026). No bids were received.
  • Kerala: Offered ₹1,500 crore of a 14‑year security. No bids were received.
  • Manipur: Offered ₹300 crore of a 9‑year security (re‑issue of 7.79% SGS 2042 issued June 10, 2026); fully subscribed at a cut‑off yield of 8.2651% (price 95.86).
  • Nagaland: Offered ₹300 crore of a 9‑year security; ₹256.615 crore accepted at a cut‑off yield of 8.18%.
  • Sikkim: Two tranches were offered – a 7.55% re‑issue of SGS 2030 (issued Sep 30, 2026) with no bids, and a 7.98% re‑issue of SGS 2042 (issued Sep 30, 2026) fully subscribed at a cut‑off yield of 8.2547% (price 97.58).
  • Tamil Nadu: Four tranches were offered – ₹2,500 crore (re‑issue of 7.80% SGS 2041, issued Jun 03, 2026) at 8.2597% (price 96.13); another ₹2,500 crore (re‑issue of 8.14% SGS 2046, issued Oct 14, 2026) at 8.2767% (price 98.67); ₹2,000 crore (re‑issue of 8.21% SGS 2051, issued Oct 14, 2026) at 8.2656% (price 99.41); and an additional ₹2,000 crore (re‑issue of 8.18% SGS 2056, issued Oct 14, 2026) at 8.2537% (price 99.18). All four tranches were fully subscribed.
  • Uttar Pradesh: Three tranches – ₹500 crore (re‑issue of 7.14% SGS 2032, issued Jul 08, 2026) at 7.9593% (price 96.29); ₹1,000 crore (re‑issue of 7.59% SGS 2042, issued Jul 08, 2026) at 8.2789% (price 93.99); and ₹2,000 crore (re‑issue of 7.95% SGS 2051, issued Sep 30, 2026) at 8.2772% (price 96.56). All were fully subscribed.
  • Uttarakhand: Offered ₹500 crore of a 9‑year security (re‑issue of 7.64% SGS 2038, issued Aug 05, 2026) fully subscribed at a cut‑off yield of 8.2295% (price 95.59).

The aggregate acceptance of ₹18,963.348 crore reflects strong demand for longer‑tenor state securities, particularly from Tamil Nadu, Uttar Pradesh and Bihar. Partial subscriptions were observed for Assam and Nagaland, while Gujarat, Jharkhand, Kerala, and one tranche of Sikkim received no bids.

Regulatory and Policy Measures

The auction was conducted under the RBI’s Yield/Price Based Auction framework for State Government Securities, aimed at deepening the sovereign debt market and providing a transparent price discovery mechanism. The press release, signed by Deputy General Manager (Communications) Ajit Prasad, underscores the RBI’s commitment to facilitating efficient market operations and supporting state financing needs.

The results demonstrate the effectiveness of the RBI’s auction mechanism in attracting investor participation across a range of tenors and coupon structures, thereby contributing to the development of the domestic debt market and supporting broader fiscal financing objectives.