RBI Concludes 2040 And 2065 Bond Auctions With Mixed Allotments

Image Source: Mint

The Reserve Bank Of India Has Completed Auctions For Government Securities Maturing In 2040 And 2065. While The 2040 Bond Auction Saw High Allotment Rates, The 2065 Bond Auction Resulted In Minimal Acceptance. The RBI Accepted Select Bids Worth ₹279.70 Billion Out Of Total Bids Exceeding ₹857 Billion

The Reserve Bank of India (RBI) has successfully concluded its latest auction of long-term government securities, including the 6.68% GS 2040 and 6.90% GS 2065 bonds. The auctions, held on October 10, 2025, drew strong interest from market participants, but the final allotments varied significantly between the two instruments.

Auction results for 2040 bond

The 6.68% GS 2040 bond, maturing on July 7, 2040, received robust demand from investors. Out of 276 bids totaling ₹465.98 billion, the RBI accepted 64 bids amounting to ₹159.86 billion. This reflects a healthy allotment rate and strong investor confidence in medium-term sovereign debt.

Key highlights from the 2040 bond auction:

- A total of 276 bids were received for the 2040 bond, indicating high market interest.
- The RBI accepted 64 bids, totaling ₹159.86 billion.
- Partial allotment was made on 27 bids, with an average allotment rate of 90.44%.
- The bond carries a coupon rate of 6.68% and is scheduled to mature in July 2040.

Auction results for 2065 bond

In contrast, the 6.90% GS 2065 bond auction saw more conservative allotments. Of the 241 bids received, totaling ₹391.66 billion, only 24 bids were accepted, amounting to ₹119.84 billion. Partial allotment was made on just 4 bids, with a significantly lower average allotment rate of 3.76%.

Key highlights from the 2065 bond auction:

- The RBI received 241 bids for the 2065 bond, reflecting moderate demand.
- Only 24 bids were accepted, totaling ₹119.84 billion.
- Partial allotment was made on 4 bids, with an average allotment rate of 3.76%.
- The bond offers a coupon rate of 6.90% and matures in April 2065.

Market implications and outlook

The contrasting allotment rates suggest a preference among investors for shorter-duration securities amid evolving interest rate expectations. The RBI’s selective acceptance strategy reflects its focus on maintaining yield discipline and managing long-term borrowing costs.

Sources: Reserve Bank of India Press Release, ANI News, MSN Money India.