RBI Sells New GS 2029 Bond At 6.03% Cut-Off Yield

The Reserve Bank of India announced that its latest auction of Government Security maturing in 2029 was fully subscribed, with the cut-off yield set at 6.03%. The successful sale highlights steady investor appetite for medium-term sovereign debt instruments, supported by expectations of stable interest rates and controlled inflation.  

Market analysts note that the 6.03% yield reflects balanced demand from institutional investors, including banks, insurance companies, and mutual funds. The full subscription underscores confidence in India’s fiscal trajectory and the RBI’s monetary stance, particularly as the central bank continues to manage liquidity and inflationary pressures.  

The GS 2029 bond is part of the government’s broader borrowing program aimed at financing expenditure while maintaining fiscal discipline. The auction outcome is seen as a positive signal for India’s debt market, reinforcing investor trust in sovereign securities.  

Key Highlights  

• RBI sets cut-off yield at 6.03% for GS 2029 bond  
• Bond issue fully subscribed, indicating strong investor demand  
• Institutional investors show confidence in India’s fiscal management  
• Part of government’s borrowing program to finance expenditure  
• Outcome reflects stability in debt market and monetary policy  

Future Outlook  
The successful auction of GS 2029 bonds strengthens India’s debt market outlook. With investor confidence intact, the RBI is expected to continue balancing liquidity and inflation management while supporting government borrowing needs. The result signals resilience in India’s financial system amid global uncertainties.  

Sources: Reuters, Economic Times, Business Standard