Policy Rates and Liquidity

The Reserve Bank of India conducted a yield/price based auction of state government securities as part of its liquidity management operations. A total of ₹20,100 crore was raised, and the entire amount was subscribed by investors. The auction covered a range of tenors and yields, reflecting the RBI’s effort to fine‑tune market liquidity and provide funding avenues for state governments.

Capital Markets and Flows

  • Andhra Pradesh issued two re‑issued bonds: a ₹1,000 crore 7.56% SGS 2039 (cut‑off price 99.10, yield 7.6695%) and a ₹1,600 crore 7.68% SGS 2051 (cut‑off price 99.89, yield 7.6891%).
  • Gujarat offered ₹1,000 crore each for tenors of 10 years (yield 7.47%) and 15 years (yield 7.59%).
  • Haryana issued ₹1,000 crore for a 9‑year tenor at 7.56% and ₹2,000 crore for a 22‑year tenor at 7.69%.
  • Maharashtra provided three issues: ₹1,000 crore for 5 years at 7.09%, ₹2,400 crore for 13 years at 7.63%, and ₹1,600 crore for 23 years at 7.70%.
  • Punjab re‑issued two bonds: ₹500 crore 7.02% SGS 2030 (cut‑off price 99.14, yield 7.2764%) and ₹1,500 crore 7.62% SGS 2039 (cut‑off price 98.94, yield 7.7498%).
  • Rajasthan re‑issued ₹1,500 crore 7.68% SGS 2044 (cut‑off price 99.75, yield 7.7050%) and ₹2,000 crore 7.65% SGS 2053 (cut‑off price 99.56, yield 7.6876%).
  • Tamil Nadu issued three re‑issues: ₹1,000 crore 7.49% SGS 2036 (cut‑off price 99.66, yield 7.5382%), ₹500 crore 7.62% SGS 2041 (cut‑off price 99.82, yield 7.6395%), and ₹500 crore 7.70% SGS 2051 (cut‑off price 100.07, yield 7.6929%).

Overall, the auction was fully subscribed, indicating strong investor demand for state government securities across a spectrum of maturities and yields.

The results underscore the RBI’s active role in managing market liquidity through targeted debt issuance, while providing state governments with necessary funding at competitive yields.