State bond auction, Oct 6: bids of ₹81,671 crore for ₹25,100 crore
Full details of the October 6 state bond auction: 13 states and UTs were allotted ₹23,600 crore, with 203 small-investor bids accepted for ₹1,305 crore.
Official title: State Government Securities - Full Auction Result · Press Release 2026-2027/1260
What happened
This is the detailed version of the October 6, 2026 state bond auction. States and UTs sought ₹25,100 crore. They received 1,485 competitive bids worth ₹81,671 crore, about 3.3 times the amount. RBI accepted 327 of them, worth ₹22,295 crore. Non-competitive bidders (small investors who accept the average rate) received ₹1,305 crore through 203 bids. Total allotted: ₹23,600 crore.
For each bond the release shows the number of bids, the cut-off yield, and the average winning yield. Delhi's two bonds and Punjab's 7.54% 2031 bond got no allotment, even though Delhi drew bids of ₹2,500 crore and ₹2,615 crore. Some bonds were heavily oversubscribed: Karnataka's 8-year bond drew ₹5,380 crore for ₹2,000 crore. Where bids at the cut-off were more than needed, only part of them were filled.
What it means for you
Individual investors can take part in these auctions; 203 non-competitive bids were accepted. 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
State bond yields around 8% provide a guide to borrowing costs for lenders and companies.
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.