The latest government bond auction drew healthy investor interest. The centre mobilised Rs 28,000 crore through the sale of the 6.68% GS 2040 and 6.90% GS 2065 papers on 14 November 2025. The 2040 bond carried a notified amount of Rs 16,000 crore, while Rs 12,000 crore was on offer for the 2065 maturity.
Bidding was brisk across both securities. The 2040 paper received 264 competitive bids worth Rs 35,746 crore, while the 2065 bond attracted 226 bids totalling Rs 28,311 crore. The strong turnout kept pricing tight, with the 2040 bond clearing at a cut-off price of 97.93, translating into a yield of 6.9057%. The 2065 security cleared at 93.91, pegging the cut-off yield at 7.3759%.
The RBI accepted 134 competitive bids in the 2040 tranche for Rs 15,985.16 crore and 119 bids in the 2065 tranche for Rs 11,975.10 crore. Partial allotment came into play as demand ran ahead of supply, with 18 bids in the 2040 auction allotted 41.79% and six bids in the 2065 paper receiving 32% each.
Weighted average yields remained close to the cut-offs, coming in at 6.9013% for the 2040 bond and 7.3685% for the 2065 maturity, signalling steady appetite even at prevailing rates.
Non-competitive buyers showed up as well, though in small numbers. Six bids worth Rs 14.84 crore were received and accepted in the 2040 segment, while seven bids totalling Rs 24.91 crore cleared in the 2065 category. Underwriting commitments of Rs 16,000 crore and Rs 12,000 crore respectively were fully subscribed, leaving no devolvement on primary dealers.