The Reserve Bank of India on 6 March 2026 conducted the full auction of two dated government securities, attracting strong investor participation across both tenors and witnessing no devolvement on primary dealers.
The auction included the 6.68% Government Security 2040 with a notified amount of Rs 16,000 crore and the 6.90% Government Security 2065 with a notified size of Rs 13,000 crore.
Investor demand comfortably exceeded the notified amounts. The 6.68% GS 2040 received 298 competitive bids amounting to Rs 46,871.86 crore, nearly three times the amount on offer. Meanwhile, the 6.90% GS 2065 drew 287 bids worth Rs 42,381.35 crore, translating into more than three times subscription.
The 6.68% GS 2040 was auctioned at a cut-off price of Rs 96.38, corresponding to a yield of 7.0848%. The weighted average price stood slightly higher at Rs 96.40, with a weighted average yield of 7.0825%.
The 6.90% GS 2065 cleared at a cut-off price of Rs 92.51, implying a yield of 7.4940%. Its weighted average price came in at Rs 92.56, with a weighted average yield of 7.4897%.
In the competitive segment, the RBI accepted 91 bids worth Rs 15,984.75 crore for the 6.68% GS 2040 and 61 bids amounting to Rs 12,984.25 crore for the 6.90% GS 2065.
Partial allotments were made in both securities. A total of 33 bids in the 2040 bond were partially allotted at 62.3079%, while 13 bids in the 2065 paper received a partial allotment of 0.4992%.
Non-competitive bids were fully accepted. The 6.68% GS 2040 received eight bids amounting to Rs 15.25 crore, while the 6.90% GS 2065 saw 10 bids worth Rs 15.75 crore.
The entire underwriting notified amount of Rs 16,000 crore for the 2040 bond and Rs 13,000 crore for the 2065 bond was accepted from primary dealers. However, there was no devolvement on primary dealers, indicating that the market absorbed the issuances without requiring underwriters to step in.