The Reserve Bank of India announced an auction of State Government Securities totaling ₹24,400 crore in face value, scheduled for October 2026. The offering includes re-issues and new issuances from 10 states, with tenors ranging from 4 to 16 years. Key participants include Maharashtra, Madhya Pradesh, and Rajasthan, each offering securities worth ₹6,000 crore combined, according to rbi.org.in.
The auction features various types of securities, including price-based and yield-based auctions. Maharashtra is re-issuing three securities with yields between 7.55% and 7.79%, while Madhya Pradesh is offering a mix of price and yield-based securities maturing between 2038 and 2048. Rajasthan's offerings include securities with yields of 10% and 16% for 10- and 16-year tenors, respectively. Other states such as Andhra Pradesh, Goa, Gujarat, Jammu and Kashmir, Meghalaya, Punjab, and Telangana are also participating with smaller issuances.
This auction is part of the states' efforts to raise funds for budgetary requirements and infrastructure projects. The yields offered reflect current market conditions and investor appetite for long-term government debt. Compared to previous auctions, the inclusion of multiple tenors and a mix of price and yield-based securities provides investors with diversified options. The ₹24,400 crore figure marks a significant borrowing program for state governments this quarter, aligning with fiscal management strategies.
The auction details, including the exact dates and bidding procedures, are available on the Reserve Bank of India's official website. The auction results will be published following the bidding process, providing insights into demand and yield trends for state government securities in October 2026.