The Reserve Bank of India (RBI) successfully concluded the auction of two government securities (G-Secs) on 11 July 2025, mobilizing a total of Rs 25,000 crore, amid robust investor interest and favorable cut-off yields.
The auction involved two benchmark papers, the new GS 2032 and the 7.09% GS 2074.
For the new GS 2032, the notified amount was Rs 11,000 crore. It saw competitive bids worth Rs 49,887 crore from 224 participants. The cut-off price was set at Rs 100.00, translating to a yield-to-maturity (YTM) of 6.280%. Out of the total bids, 69 were accepted, with Rs 10,981.97 crore allocated. A partial allotment of 52.37% was applied across 50 bids. The weighted average price settled at Rs 100.02 with a yield of 6.2767%.
Meanwhile, the 7.09% GS 2074 received even stronger interest, with Rs 59,991.28 crore in bids against a notified amount of Rs 14,000 crore. The cut-off price stood at Rs 99.12 (YTM of 7.1541%). RBI accepted 33 bids amounting to Rs 13,983.72 crore, implying a partial allotment rate of 79.37%. This paper was awarded at a weighted average price of Rs 99.18, delivering a yield of 7.1496%.
Non-competitive bids were fully accepted for both securities. For GS 2032, six non-competitive bids were accepted, totaling Rs 18.04 crore. Similarly, four bids totaling Rs 16.28 crore were accepted for the GS 2074.
Importantly, there was no devolvement on primary dealers, as the full underwriting amount of Rs 11,000 crore for GS 2032 and Rs 14,000 crore for GS 2074 was accepted.
The outcome reflects sustained investor appetite for long-duration sovereign paper, even as the market navigates global rate uncertainties and inflation signals.