Oct 1 bond auction: Centre borrows ₹33,000 crore at 6.77% (3 yr) to 7.69% (30 yr)
The government raised the full ₹33,000 crore. It will pay about 6.8% for 3 years, 7.2% for 7 years and about 7.7% for 30 years. No dealer had to step in.
Official title: Government Stock - Auction Results: Cut-off · Press Release 2026-2027/1230
What happened
The October 1, 2026 auction raised the whole ₹33,000 crore the government wanted. The cut-off yields, the highest rates the government accepted, were 6.7688% on the 6.20% bond due 2029 (about 3 years), 7.1680% on the 6.57% bond due 2033 (about 7 years), 7.6895% on the 7.63% bond due 2056 (about 30 years) and 7.6539% on the 7.50% green bond due 2056.
In plain terms, the government will pay about 6.8% a year to borrow for three years and nearly 7.7% a year to borrow for thirty. Primary Dealers, who had promised to buy any unsold portion, were not called on, so devolvement was nil.
What it means for you
These rates are a guide to the cost of long-term money. Interest rates on long-term loans tend to move with government bond yields over time. If you want to lend to the government yourself, individuals can bid in these auctions through the RBI Retail Direct portal.
What it means for businesses
Companies borrowing through bonds watch these yields as the base rate. Long-term government borrowing at about 7.7% is a reference point for corporate borrowing costs.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.