Govt borrows ₹34,000 crore for 10 years at 7.40% on October 16
The 6.94% GS 2036 sold at a cut-off yield of 7.3955%, so the government will pay about 7.4% a year to borrow until 2036.
Official title: Government Stock - Auction Results: Cut-off · Press Release 2026-2027/1339
What happened
In the October 16, 2026 auction, the government raised the full ₹34,000 crore through the 6.94% GS 2036. The cut-off price was ₹96.91 per ₹100 of face value, which gives a yield of 7.3955%. In plain terms, the government will pay about 7.4% a year to borrow for roughly ten years.
No part of the issue fell on Primary Dealers, meaning investors bought everything.
What it means for you
Anyone could bid for this bond through RBI Retail Direct. Its yield is a benchmark for other long-term rates.
What it means for businesses
The yield on bonds of this length guides pricing of corporate bonds and many loans.
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.