RBI Accepts Full Rs 30,000 Crore In G-Sec Auction Amid Strong Demand

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RBI accepted the full Rs 30,000 crore in its October 17 G-Sec auction, reflecting strong investor demand. The 6.01% GS 2030 and 7.09% GS 2074 saw high subscription and competitive yields. No devolvement occurred, indicating robust market confidence in sovereign debt amid global financial uncertainty.

The Reserve Bank of India (RBI) concluded its latest government securities (G-Sec) auction on October 17, 2025, accepting the entire notified amount of Rs 30,000 crore. The auction drew robust investor interest across maturities, reflecting confidence in India’s debt instruments despite global economic uncertainties.

Key Highlights From The Auction Results

- The auction included two securities: 6.01% GS 2030 with a notified amount of Rs 18,000 crore, and 7.09% GS 2074 with Rs 12,000 crore

- For GS 2030, RBI received 276 competitive bids worth Rs 68,500 crore, accepting 79 bids totaling Rs 17,987 crore at a cut-off yield of 6.1252%

- For GS 2074, 170 bids were received amounting to Rs 24,260 crore, with 128 bids accepted totaling Rs 11,987 crore at a cut-off yield of 7.1782%

- Non-competitive bids were fully accepted in both segments, totaling Rs 12.97 crore for GS 2030 and Rs 13.04 crore for GS 2074

- No devolvement occurred on primary dealers, indicating strong market appetite and adequate subscription levels

Strategic Insights

The full acceptance of the notified amount signals RBI’s confidence in market liquidity and investor sentiment. The attractive yields and absence of devolvement suggest that institutional investors are actively seeking long-term sovereign instruments amid volatile equity and global bond markets.

Industry Context

Government securities remain a cornerstone of India’s debt market, offering risk-free returns and portfolio stability. The auction’s success reinforces the role of G-Secs in fiscal management and monetary policy transmission, especially as India navigates inflation control and growth revival.

Market Outlook

With yields stabilizing and demand remaining strong, future G-Sec auctions are expected to maintain momentum. Analysts anticipate continued interest from banks, mutual funds, and insurance firms seeking secure avenues for capital deployment.

Sources: The Hindu BusinessLine, Zee News, MSN News

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