State governments raised a total of Rs 30,100 crore in the latest yield- and price-based auction of State Government Securities conducted on 6 January 2026, according to data released by the Reserve Bank of India.
The auction saw full acceptance of the notified amounts across all participating states and maturities, with issuances spanning tenors from four years to as long as 30 years. Andhra Pradesh was the largest borrower in the auction, raising Rs 6,500 crore across six maturities ranging from 10 to 21 years, with yields between 7.53% and 7.64%.
Karnataka mobilised Rs 6,000 crore through a mix of fresh issuances and re-issues, including a re-issue of its 7.19% 2032 security, which cleared at a yield of 7.2501%. Tamil Nadu raised Rs 6,000 crore across five maturities, including a 30-year paper that cleared at a yield of 7.58% and a re-issue of its 7.42% 2035 bond at a yield of 7.4844%.
Madhya Pradesh raised Rs 4,000 crore through three tranches, including a four-year bond that cleared at a relatively lower yield of 6.95%. West Bengal raised Rs 3,000 crore across 15-, 19- and 21-year securities, with yields ranging from 7.60% to 7.64%.
Other participants included Assam, which raised Rs 1,000 crore through a 10-year bond at 7.57%, Chhattisgarh, which mobilised Rs 2,000 crore across 9- and 20-year tenors, Jammu and Kashmir, which raised Rs 600 crore via a 12-year paper at 7.67%, and Rajasthan, which raised Rs 1,000 crore through a 14-year bond at 7.65%.
The full acceptance across all notified amounts indicates steady demand for state government paper despite elevated yields, reflecting stable appetite among investors for longer-dated state bonds.