Big Bond Sale Ahead: India to Auction ₹32,000 Crore in Government Securities on June 6

Image Source: Business Standard

The Indian government is set to raise ₹32,000 crore through a major bond auction on June 6, giving investors a fresh opportunity to buy into long-term government securities. According to official announcements, the sale will include two key offerings: ₹16,000 crore of the 6.92% Government Security maturing in 2039, and ₹16,000 crore of a new 6.90% Government Security maturing in 2065.

Key Highlights:

The auction will be conducted using the multiple price method, allowing both competitive and non-competitive bids via the Reserve Bank of India’s e-Kuber system.
Investors can submit their bids on the auction day, with the government also retaining the option to accept up to ₹2,000 crore extra for each security if demand is strong.
This bond sale is part of India’s broader borrowing plan for the fiscal year, aiming to meet funding needs for infrastructure, welfare programs, and other government spending.

Recent trends show strong demand for Indian government bonds, with yields dipping to multi-week lows as investors, insurers, and the RBI itself continue to buy in.

Market sentiment remains positive, bolstered by the RBI’s liquidity support and expectations of stable interest rates, even as global economic conditions remain uncertain.

The results of this auction will be closely watched by domestic and international investors, as they could influence the bond market’s direction in the coming months.

Sources: Business Standard, Wealthy.in, 5paisa