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

Issuing authority: Reserve Bank of India

Reference number: Press Release: 2026-2027/520

Date: June 23, 2026

Capital Markets and Flows

The Reserve Bank of India released the outcome of a yield/price‑based auction of State Government Securities (SGS) conducted on June 23, 2026. The auction sought to raise a total of ₹16,900 crore from various states and Union Territories. Investor participation resulted in an acceptance of ₹17,900 crore, indicating an oversubscription of ₹1,000 crore.

State‑wise details are as follows:

  • Bihar re‑issued two securities, ₹1,200 crore each, with cut‑off prices 100.43 and 100.49 and yields 7.6199% and 7.7828% for tenors 2035 and 2041 respectively.
  • Chhattisgarh re‑issued two securities, ₹500 crore each, priced at 100.41 and 100.46 with yields 7.6178% and 7.7744% for tenors 2036 and 2048.
  • Delhi issued ₹1,000 crore at a 7.57% yield for a 10‑year tenor and ₹500 crore at a 7.75% yield for a 15‑year tenor.
  • Gujarat initially targeted ₹1,000 crore for each of the 9‑year and 13‑year issues but accepted ₹1,500 crore for each, with yields of 7.43% and 7.61% respectively; an additional ₹500 crore was accepted in each tranche.
  • Himachal Pradesh issued ₹300 crore at a 7.78% yield for an 18‑year tenor and ₹400 crore at a 7.77% yield for a 23‑year tenor.
  • Kerala re‑issued two securities, ₹1,800 crore total, priced at 100.63 with a yield of 7.7692% for the 2049 issue.
  • Madhya Pradesh re‑issued two securities, ₹1,600 crore and ₹1,200 crore, with cut‑off prices 101.04 and 100.61 and yields 7.4600% and 7.7700% for tenors 2034 and 2048.
  • Tamil Nadu re‑issued three securities, each ₹1,000 crore, with cut‑off prices 101.65, 101.45 and 100.78 and yields 7.3806%, 7.5291% and 7.7103% for tenors 2033, 2036 and 2041 respectively.
  • Uttar Pradesh re‑issued two securities, ₹700 crore at a cut‑off price 100.88 and yield 7.5893% for a 2036 tenor, and ₹1,000 crore at a 7.76% yield for a 15‑year tenor.

Overall, the cut‑off yields across the auction ranged from a low of 7.38% (Tamil Nadu 2033) to a high of 7.82% (Chhattisgarh 2048). Several securities were priced above a face value of 100, reflecting premium pricing in the auction.

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 market for sub‑sovereign debt and improving price discovery. The additional acceptance by Gujarat of ₹500 crore in each of the 9‑year and 13‑year issues demonstrates flexibility in allocation to meet investor appetite while adhering to the RBI’s issuance guidelines.

The successful oversubscription and the range of yields indicate robust market liquidity and confidence in state‑level debt instruments, supporting the RBI’s broader objective of developing a diversified and resilient domestic debt market.

In conclusion, the June 2026 SGS auction achieved total acceptance exceeding the targeted raise, with competitive yields across a spectrum of tenors, and reflects the RBI’s continued emphasis on efficient market mechanisms for government borrowing.