Result of Yield/Price Based Auction of State Government Securities
Issuing Authority: Reserve Bank of India
Reference: Press Release: 2026-2027/1259
Date: October 06, 2026
Policy Rates and Liquidity
The auction employed a yield/price mechanism. For Andhra Pradesh, the re‑issue of the 7.46% SGS 2035 (issued 12 Aug 2026) had a cut‑off price of 97.10 and a yield of 7.9197%, while the 7.79% SGS 2042 (issued 22 Apr 2026) recorded a cut‑off price of 98.17 and a yield of 7.9971%. Himachal Pradesh’s 7.78% SGS 2044 (issued 24 Jun 2026) posted a cut‑off price of 97.86 and a yield of 8.0061%. Madhya Pradesh’s two re‑issues – 7.61% SGS 2044 (issued 08 Jul 2026) at 96.43/7.9877% and 7.75% SGS 2056 (issued 02 Sep 2026) at 97.39/7.9794% – were fully subscribed. Maharashtra’s three re‑issues – 7.09% SGS 2031 (issued 27 Aug 2026) at 97.82/7.6297%, 7.63% SGS 2039 (issued 27 Aug 2026) at 97.21/7.9788%, and 7.70% SGS 2049 (issued 27 Aug 2026) at 96.94/7.9921% – all attracted bids at yields around 7.63‑8.01%. West Bengal’s 7.58% SGS 2035 (issued 22 Jul 2026) recorded a cut‑off price of 97.81 and a yield of 7.9278%; its 7.71% SGS 2047 (issued 22 Jul 2026) posted a cut‑off price of 96.41 and a yield of 8.0671%. Other states such as Goa (yield 7.85%), Jammu & Kashmir (yield 8.01%), Karnataka (yield 7.86%), Meghalaya (yield 8.08%), Telangana (yields 8.03% for 20‑year and 8.02% for 26‑year), and Rajasthan (two issues: 7.87% SGS 2041 at 98.81/8.0079% and 7.76% SGS 2048 at 97.37/8.0157%) also had disclosed cut‑off yields. Delhi and Punjab did not receive any bids, and therefore no cut‑off price or yield was determined for their re‑issues of 7.31%/7.75% and 7.54% respectively.
Capital Markets and Flows
The auction aimed to raise a total of ₹25,100 crore across 13 states/UTs. Investors accepted ₹23,600 crore, representing a 94.1% overall subscription rate. Andhra Pradesh raised the full ₹2,000 crore (two tranches of ₹1,000 crore each). Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, and West Bengal each saw full subscription of their respective issues, with accepted amounts matching the amounts to be raised. Goa, Jammu & Kashmir, Meghalaya, Telangana, and Rajasthan also achieved 100% subscription for each tranche listed. The only unsubscribed portions were Delhi’s ₹1,000 crore and Punjab’s ₹500 crore, both of which received zero bids. The tenors of the securities ranged from 8 to 26 years, with specific tenors noted for each issue (e.g., Andhra Pradesh SGS 2035 – 7‑year tenor, Maharashtra SGS 2049 – 17‑year tenor).
Overall, the RBI’s yield/price‑based auction demonstrated strong investor appetite for state government securities, with most states achieving full subscription at yields clustered around 7.9‑8.0%, while a few re‑issues attracted no demand. This outcome provides insight into current market liquidity conditions and the pricing environment for sub‑sovereign debt.