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Debt Market News

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(02 Sep 2025, 15:09)

States raise Rs 29,083 crore via bond auction


State governments mobilised Rs 29,082.56 crore through the latest yield and price-based auction of securities, lower than the notified amount of Rs 31,650 crore, as some re-issues and longer-tenor papers saw muted response.

Andhra Pradesh fully raised Rs 5,000 crore across maturities of 8 to 12 years at cut-off yields ranging from 7.48% to 7.63%. Assam garnered Rs 800 crore at 7.63% for a 10-year tenor, while Bihar picked up Rs 4,000 crore through 6-year and 8-year bonds at 7.24% and 7.54% respectively.

Gujarat raised Rs 1,500 crore at 7.01% for six years, whereas Kerala tapped Rs 4,000 crore at the longer end, locking in 20-year paper at 7.78% and 35-year paper at 7.74%.

Maharashtra mobilised Rs 1,500 crore through re-issues of its 2039 and 2040 securities at yields near 7.53%. However, it accepted no bids in the re-issues of its 2054 and 2055 papers.

Other issuances included Rs 350 crore by Manipur at 7.72% for 12 years, Rs 500 crore by Meghalaya at 7.69% for 10 years, and Rs 1,932.56 crore by Punjab for 7 years at 7.73%, lower than its notified Rs 2,000 crore. Rajasthan raised Rs 1,500 crore at 7.73% for a 30-year security.

Tamil Nadu secured Rs 2,000 crore via 2-year and 9-year bonds at 6.27% and 7.31%, while skipping the 30-year paper. Telangana tapped Rs 6,000 crore through four long-tenor issuances between 26 and 38 years at 7.72% to 7.74%.

The softer acceptance highlights selective appetite from investors, particularly at the ultra-long end, even as demand for shorter and medium tenors remained firm.


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