RBI auction sees full subscription for Rs 28,000 crore government securities
New Delhi, July 24
The Reserve Bank of India on Friday said the government's auction of two dated securities worth Rs 28,000 crore received full subscription, with the entire notified amount accepted and no devolvement on Primary Dealers, after earlier announcing the underwriting commission cut-off rates for the securities.
In a separate release issued before the auction results, the RBI had said, "In the underwriting auction conducted on July 24, 2026, for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rate for underwriting commission payable to Primary Dealers."
According to the auction results released later, the RBI accepted the full Rs 17,000 crore notified amount for the New GS 2041 security and the entire Rs 11,000 crore notified amount for the 7.43% GS 2076 security. It also said "Devolvement on Primary Dealers" was "NIL" for both securities.
The RBI said the cut-off yield for the new GS 2041 security was 7.06 per cent, while the 7.43% GS 2076 bond was accepted at a cut-off price of Rs 97.55, corresponding to an implicit yield of 7.6212 per cent.
Ahead of the auction, the central bank had fixed the underwriting commission cut-off rate at 0.74 paise per Rs 100 for the New GS 2041 security and 0.98 paise per Rs 100 for the 7.43% GS 2076 security under the Additional Competitive Underwriting (ACU) auction.
The RBI had also said the underwriting covered the entire notified amounts of both securities. For the New GS 2041 bond, the Minimum Underwriting Commitment (MUC) was Rs 8,505 crore, and the Additional Competitive Underwriting amount accepted was Rs 8,495 crore. For the 7.43% GS 2076 bond, the MUC stood at Rs 5,502 crore, while the Additional Competitive Underwriting amount accepted was Rs 5,498 crore.
The announcements were made through separate RBI press releases issued by the Department of Communication.
— ANI
Reader Comments
A full subscription with no devolvement is a solid sign. The RBI is managing liquidity smartly. But I wish the yields were a bit higher for retail investors.
Great that primary dealers took full commitment! Shows the market is hungry for government paper. But with inflation still a concern, hope the RBI doesn't go overboard with borrowing. 🙏
The underwriting commission seems very low - 0.74 paise per Rs 100. That's tiny! But I guess when you bid for crores, it adds up. Interesting auction structure though.
Honestly, these auctions feel like insider games between RBI and PDs. MUC split is complex. Wish retail investors could get easier access. But overall, stable market is good for economy. 🇮🇳
Full subscription shows liquidity is ample and banks are comfortable. 7.06% on the 2041 bond is decent for a long tenor. But I wonder how much of this is foreign investment vs domestic. 🤔
All this jargon makes my head spin! But good to hear the auction went well. Means our economy is on track. Hope the money goes to infrastructure and not just interest payments.
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