Govt bond October 16: ₹94,072 crore of bids for ₹34,000 crore at 7.40%
Bids were nearly three times the amount on offer. The 6.94% GS 2036 sold at a cut-off yield of 7.3955%.
Official title: Government Stock - Full Auction Results · Press Release 2026-2027/1340
What happened
The full result: ₹94,072 crore of competitive bids came in for the ₹34,000 crore sale of the 6.94% GS 2036, almost three times the amount. RBI accepted ₹33,961 crore of competitive bids and ₹39 crore of non-competitive bids.
The cut-off yield was 7.3955% (price ₹96.91) and the weighted average yield 7.3925%. So the government borrows at about 7.4% a year for ten years. Bidders at the cut-off got about 21% of their bids. Dealers did not have to take up any underwritten amount.
What it means for you
Five small investors received the full ₹39 crore they bid for at the average yield of about 7.39%.
What it means for businesses
Strong demand suggests investors are comfortable at about 7.4% for 10-year government paper.
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.