In the latest G-Sec auction held on 1 August 2025, the Reserve Bank of India successfully auctioned Rs 32,000 crore worth of government securities, split evenly between the 6.68% GS 2040 and 6.90% GS 2065 bonds.
The 6.68% GS 2040 bond saw aggressive bidding with Rs 38,490 crore worth of competitive bids against the notified amount of Rs 16,000 crore. The cut-off yield stood at 6.6985%, and the weighted average yield settled at 6.6942%. A total of 154 bids were accepted, and the bond was priced marginally below par at Rs 99.86.
Meanwhile, the 6.90% GS 2065 received Rs 45,927 crore in competitive bids, also far exceeding its notified amount of Rs 16,000 crore. The cut-off yield was higher at 7.0818%, with the weighted average yield coming in at 7.0772%. However, only 55 competitive bids were accepted, with a significant 38.34% of bids allotted on a partial basis, indicating selective allocation.
Non-competitive bids were fully accepted for both bonds. The 2040 bond garnered Rs 15 crore from 7 bids, while the 2065 bond attracted Rs 41.87 crore from 5 bids. Importantly, there was no devolvement on primary dealers, suggesting strong market appetite and underwriting participation.