The Government of India will auction a total of ₹300 billion in government securities on December 19. The sale includes ₹120 billion of 7.09% 2074 ultra‑long bonds and ₹180 billion of 6.01% 2030 bonds. The auction outcome will be closely watched for yield direction, demand from insurers, pension funds and foreign investors.
Auction details and context
India plans to raise ₹300 billion through a multi‑tranche auction comprising long‑dated and benchmark‑segment paper. The calendar specifies ₹120 billion of 7.09% Government Security maturing 2074, catering largely to insurers, pension funds and other long‑term liability investors seeking duration. The remaining ₹180 billion will be raised via 6.01% Government Security maturing 2030, a key point on the on‑the‑run curve that often anchors pricing for corporate issuers and bank balance sheets.
Key highlights
The auction on December 19 is part of the regular weekly borrowing schedule under the current half‑yearly plan, and helps smoothen the government’s financing profile across maturities.
Demand and cut‑off yields will be a signal of market expectations on future rate moves from the Reserve Bank of India, inflation trajectory and fiscal risks.
Strong bidding from long‑only investors and foreign portfolio investors could help contain yields despite the additional supply, while weak cover ratios may push secondary‑market yields higher in the near term.
Sources: Public debt management communications and recent government securities auction notices from the Reserve Bank of India and Ministry of Finance.