Document title: State Government Securities Full Auction Result, issuing authority: Deputy General Manager (Communications), reference number: Press Release 2026-2027/965, date: 25 August 2026.
Policy Rates and Liquidity
The auction cut‑off yields varied between 7.09 % and 7.70 %, with weighted average yields for individual issues clustering around 7.6 %. These yields reflect market pricing for sovereign debt across tenors from 5 to 23 years.
Capital Markets and Flows
On 25 August 2026 the Treasury conducted a full‑scale auction of State Government Securities (SGS) amounting to a total notified issuance of ₹20,100 crore. Securities were issued by Andhra Pradesh, Gujarat, Maharashtra, Punjab, Rajasthan, Tamil Nadu and other states, with tenors ranging from 5 years to 23 years and coupon rates between 7.02 % and 7.70 %. Competitive bids were received for all issues, with the number of bids per issue ranging from 8 to 89 and total competitive bid amounts exceeding the notified amounts, indicating strong demand. The overall competitive bid‑to‑allotment percentages varied from 55.07 % to 96.07 % across issues, while non‑competitive bids accounted for a smaller share, with acceptance rates generally at 100 % of the bid amount. The weighted average yield across the entire auction was approximately 7.6 %. Total allotment matched the notified amount for each issue, confirming full subscription.
The auction saw particularly high participation for Maharashtra SGS 2049 (82 competitive bids, ₹3,980 crore) and Rajasthan SGS 2053 (43 competitive bids, ₹6,070 crore). Non‑competitive bids were limited, with prices marginally above the cut‑off price (e.g., ₹99.26 for Andhra SGS 2039), reflecting investor preference for the competitive allocation.
Overall, the auction demonstrates robust demand for state‑level sovereign debt and provides a benchmark for future government borrowing costs.