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Debt Market News

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(08 Jul 2025, 17:17)

States raise Rs 13,300 crore via yield-based auction of government securities


A total of Rs 13,300 crore was raised by seven states through the latest round of yield-based auctions of state government securities (State Development Loans), held on 8 July 2025.

Bihar secured Rs 2,000 crore at the lowest yield of 6.88% for a 10-year tenor, the lowest yield in this auction cycle.

Madhya Pradesh secured the highest individual amount by raising a total of Rs 4,800 crore across two separate issues: Rs 2,500 crore for a 16-year tenor at a cut-off yield of 7.14%, and another Rs 2,300 crore for an 18-year tenor at 7.15%.

Maharashtra raised Rs 4,000 crore across two tranches of 20 and 21 years, both at a cut-off yield of 7.14%.

Jammu & Kashmir and Mizoram raised Rs 400 crore and Rs 100 crore respectively, both at a cut-off yield of 7.14% for 15-year securities.

Telangana, which offered the longest-dated paper, raised Rs 1,000 crore via a 30-year bond at 7.13%. Haryana also raised Rs 1,000 crore with a 16-year tenor priced at 7.12%.

The cut-off yields indicate a marginal upward bias in longer tenors, reflecting broader market expectations of elevated interest rates. The auction was fully subscribed, with all notified amounts accepted by the Reserve Bank of India on behalf of the states.


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