States Borrow ₹548 Billion As RBI Details Cut-Offs; Tamil Nadu Accepts Partial Amount

The auctions covered a wide range of securities, from short-term five-year bonds to long-term 25-year loans. The cautious borrowing reflects investor sentiment amid elevated yields and volatile market conditions.  

Borrowing Trends  
Tamil Nadu accepted ₹7.45 billion in the re-issue of its 7.28% SGS 2033. Assam and Jharkhand did not accept any amounts in their 2032 re-issues, while Kerala refrained from accepting bids in its five-year security.  

Market Context  
The lower-than-targeted borrowing highlights cautious demand from investors, with longer-tenure bonds carrying higher yields. States continue to balance fiscal needs with market realities, focusing on infrastructure and welfare spending.  

Auction Highlights  

• 21 states raised ₹548.34 billion, below ₹574.08 billion target  
• Cut-off yields ranged between 7.25% and 7.89%  
• Tamil Nadu accepted partial ₹7.45 billion in SGS 2033  
• Assam, Jharkhand, and Kerala did not accept bids  
• Reflects cautious investor sentiment amid high yields  

Sources: Reuters, RBI Announcement