Rs 27,000 crore government securities auction fully subscribed

India Gazette

23-05-2025

New Delhi [India], May 23 (ANI): Government securities (G-sec) auction of Rs. 27,000 crore bonds in two tranches on Friday was fully subscribed, reflecting strong investor demand. The cut-off price for both bonds was above par. The 6.75 per cent G-sec with a notified amount of Rs. 15,000 crore maturing in 2029 was sold at a cut-off price of Rs 103.49, yielding 5.8675 per cent. The 7.09 per cent G-sec with a notified amount of Rs 12,000 crore, maturing in 2054, was sold at a cut-off price of Rs 103.39, yielding 6.8197 per cent.
The bond yield is the return an investor expects to receive each year over its term to maturity.As per the auction results, the development of primary dealers was stated as 'NIL' for both thebonds, indicating healthy demand for G-sec from the investor community.
Primary Dealers, commonly referred to as PDs, are financial institutions authorized by the RBI to buy and sell government securities.
The underwriting auction was conducted through multiple price-based methods on May 23 (Friday) between 09:00 A.M. and 09:30 A.M.
Bids under Additional Competitive Underwriting (ACU) auction was done electronically through the Core Banking Solution (E-Kuber) System.
Earlier this year, on March 27, the government had notified the indicative calendar for theissuance of government-dated securities, including Sovereign Green Bonds (SGrBs), for thefirst half of the fiscal year 2025-26 (April 1, 2025, to September 30, 2025).
The indicative calendar for such auctions is released beforehand in order to enable institutional and retail investors to plan their investments efficiently and to provide transparency and stability to the Government Securities market. (ANI)