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On February 27, 2026, the Reserve Bank of India (RBI) announced that the government’s 6.48% 2035 bond was fully subscribed. The cut-off price was set at ₹98.36, translating to a yield of 6.7134%. The auction outcome reflects strong investor demand and stable long-term borrowing costs.
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Key Highlights
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Auction Outcome: The RBI confirmed that the 6.48% Government Security maturing in 2035 was fully sold in today’s auction.
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Cut-Off Price: The bond was priced at ₹98.36, slightly below par, signaling investor appetite despite minor discounting.
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Yield Performance: The cut-off yield stood at 6.7134%, aligning with market expectations for long-term borrowing costs.
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Investor Sentiment: Full subscription indicates robust demand from institutional investors, reflecting confidence in India’s fiscal stability and debt management strategy.
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Market Context: With global uncertainties and domestic liquidity conditions, the auction underscores the RBI’s role in ensuring smooth government borrowing while balancing yield levels.
What This Means
The successful auction highlights India’s ability to attract long-term capital at competitive yields. For investors, the 6.48% 2035 bond offers a stable return profile, while policymakers gain assurance of continued market support for government borrowing programs.
Sources: Reuters (RTRS), Reserve Bank of India
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