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Debt Market News

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(22 Aug 2025, 16:17)

Govt raises Rs 36,000 crore via GSec auction


The government mobilised Rs 36,000 crore through the auction of two securities on 22 August 2025. The auction comprised the sale of Rs 6,000 crore of 5.91% GS 2028 and Rs 30,000 crore of 6.33% GS 2035.

For the 5.91% GS 2028 paper, competitive bids worth Rs 21,922 crore were received against the notified Rs 6,000 crore, with four bids accepted totalling Rs 5,998.28 crore. The cut-off price was fixed at 99.75, translating into a yield of 6.0032%. The weighted average yield came in marginally lower at 5.9994%.

The 6.33% GS 2035 bond saw significantly higher participation, with competitive bids totalling Rs 70,397 crore. Out of this, Rs 29,979 crore was accepted through 143 bids. The cut-off price stood at 98.39, resulting in a yield of 6.5553%. The weighted average yield was higher at 6.5496%, reflecting tight liquidity conditions and investor caution on long-dated papers.

Non-competitive bids were fully accepted in both segments, with Rs 1.72 crore allotted in the 2028 paper and Rs 20.69 crore in the 2035 bond.

Underwriting commitments of Rs 36,000 crore were fully absorbed by primary dealers, with no devolvement reported.


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