The Reserve Bank of India (RBI) successfully completed the auction of two government securities (G-Secs) worth Rs 32,000 crore on 6 June 2025, attracting strong investor interest across both competitive and non-competitive bids.
The bonds on offer, 6.92% GS 2039 and 6.90% GS 2065, each carried a notified amount of Rs 16,000 crore and were fully subscribed, underscoring the market’s appetite for long-term sovereign debt.
The 6.92% GS 2039 drew 230 competitive bids amounting to Rs 33,067.50 crore, significantly overshooting the notified size. Of these, 154 bids worth Rs 15,987.45 crore were accepted. A partial allotment was made to 11 bids, with a modest allotment ratio of 15.66%. The cut-off price for this bond was set at Rs 103.85, translating to a yield-to-maturity (YTM) of 6.5043%. The weighted average yield worked out slightly lower at 6.4948%, suggesting investors were willing to settle for lower yields in a bullish interest rate environment.
The 6.90% GS 2065 saw even stronger participation with 240 competitive bids totaling Rs 37,586 crore. Out of these, 95 bids amounting to Rs 15,986.82 crore were accepted, and 7 of them were partially allotted, with a much higher allotment percentage of 61.99%. The cut-off price stood at Rs 99.33, which implied a YTM of 6.9489%, while the weighted average yield came in close at 6.9414%.
In the non-competitive segment, both securities received 7 bids each. All bids were accepted in full, with the 2039 paper garnering Rs 12.55 crore and the 2065 paper attracting Rs 13.18 crore through this route. Interestingly, there was no devolvement on primary dealers for either bond, reflecting smooth absorption by the market.
The successful conclusion of the auction, coupled with healthy bidding interest, suggests that investor confidence remains strong, especially in the wake of the RBI's latest monetary easing. With yields holding steady and underwriting fully covered, the results point to a stable and liquid debt market environment.