Government Securities

State government borrowing activity remains robust as the Reserve Bank of India (RBI) continues to facilitate auctions of State Government Securities (SGS) to fund state-level initiatives. Recent auctions, totaling approximately ₹30,000 crore across multiple states and tenors, have consistently seen competitive bids exceed notified amounts, indicating strong investor demand. Weighted average yields have varied depending on the state and tenor, ranging from 6.99% to 7.83%, reflecting differing risk perceptions and funding needs. This sustained demand for SGS suggests continued investor appetite for relatively safe, fixed-income assets, potentially supporting state-level fiscal programs and infrastructure development.