The Reserve Bank of India successfully raised a total of Rs 32,000 crore in the latest government securities (G-Sec) auction, reflecting robust demand from market participants. The auction covered two securities: a new GS maturing in 2040 and the 6.90% GS maturing in 2065, with a notified amount of Rs 16,000 crore for each.
For the New GS 2040, the RBI received 224 competitive bids totaling Rs 46,341 crore. Of these, 106 bids amounting to Rs 15,990.55 crore were accepted. The cut-off price was set at Rs 100, implying a yield to maturity (YTM) of 6.68%. The weighted average yield (WAY) came in slightly lower at 6.669%, with the weighted average price at Rs 100.10. A partial allotment of 15.67% was made for 59 bids.
On the other hand, the 6.90% GS 2065 saw even stronger demand, attracting 332 competitive bids worth Rs 50,551.54 crore. The RBI accepted 122 bids totaling Rs 15,983.79 crore at a cut-off price of Rs 97.27, translating to a YTM of 7.1057%. The weighted average yield stood at 7.098%, with a weighted average price of Rs 97.37. Partial allotment was made for 15 bids at a rate of 6.0454%.
In both tranches, five non-competitive bids were received and fully accepted. For the GS 2040, the non-competitive allotment stood at Rs 9.45 crore, while the GS 2065 saw Rs 16.21 crore allotted under the same route.
Underwriting was fully covered for both securities, with Rs 16,000 crore underwritten and accepted from primary dealers for each bond. There was no devolvement on primary dealers, underscoring healthy market appetite and efficient bidding behavior.