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Debt Market News

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(05 Sep 2025, 13:24)

Govt bond auction sees strong demand, cut-off yields rise


The government’s latest bond auction on 4 September 2025 witnessed robust demand across maturities, with bids far exceeding the notified amounts for both securities on offer.

For the 6.28% GS 2032, against a notified amount of Rs 11,000 crore, the Reserve Bank of India received competitive bids worth Rs 26,398.50 crore. The cut-off yield stood at 6.5497%, with 75 bids accepted for Rs 10,985.86 crore. The weighted average yield was slightly lower at 6.5423%.

In the case of the 7.09% GS 2074, the notified amount of Rs 14,000 crore drew bids of Rs 39,425 crore. The cut-off yield was fixed at 7.3844%, with 89 bids accepted for Rs 13,955.52 crore. The weighted average yield was 7.3765%.

Non-competitive bids worth Rs 14.14 crore for the 2032 bond and Rs 44.48 crore for the 2074 bond were fully accepted. Both auctions witnessed partial allotments, with competitive bids receiving 89.46% acceptance in the 2032 bond and 31.45% in the 2074 bond.

There was no devolvement on primary dealers, with underwriting fully covered at Rs 11,000 crore and Rs 14,000 crore, respectively.


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