RBI Bond Auction Fully Subscribed As Government Raises 290 Billion Rupees

The Reserve Bank of India confirmed that the government’s latest bond auction was fully subscribed, reflecting strong investor demand. The auction included long-dated securities, with the 6.90% 2065 bond priced at 92.53 rupees and yielding 7.4917%, while the 6.68% 2040 bond was priced at 95.67 rupees with a yield of 7.1658%.  

The government successfully raised 290 billion rupees, exactly matching its targeted borrowing amount. Analysts note that the auction results highlight investor confidence in India’s debt market, despite global uncertainties and domestic inflationary pressures. The yields indicate the market’s balancing of long-term borrowing costs with expectations of future interest rate movements.  

Key highlights from the announcement include  

• Cut-off price for 6.90% 2065 bond at 92.53 rupees, yield 7.4917%  
• Cut-off price for 6.68% 2040 bond at 95.67 rupees, yield 7.1658%  
• Government raised 290 billion rupees, meeting its borrowing target  
• Auction fully subscribed, reflecting strong investor demand  
• Yields signal market expectations on long-term interest rates  

Industry experts emphasize that the successful auction underscores stability in India’s debt market and the government’s ability to meet borrowing needs efficiently.  

Sources: Reuters, Economic Times, Business Standard, Mint