Categories: Business News

RBI Auctions ₹36,000 Crore In Government Bonds, Fully Subscribed Ahead Of MPC Meet

The RBI conducted two fully subscribed government securities auctions worth ₹36,000 crore, reflecting strong investor confidence ahead of the upcoming Monetary Policy Committee meeting scheduled for August 5–7, 2025.

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Published by Aishwarya Samant
Published: July 28, 2025 13:30:46 IST

The Reserve Bank of India (RBI) successfully conducted two government securities auctions with a notified amount of Rs 30,000 crore and Rs 6000 crore. Both auctions were fully subscribed, highlighting a robust demand for government bonds.

According to the detailed auction results released by RBI, the two securities auctioned were the 5.91 per cent Government Security (GS) maturing in 2028 of Rs 6000 crore and the 6.33 per cent GS maturing in 2035 of Rs 30000 crore.

The auction for the 5.91 per cent GS 2028 received competitive bids worth Rs 24,453 crore from 98 participants, while the 6.33 per cent GS 2035 received bids totalling Rs 74,694 crore from 402 bidders. After evaluation, RBI accepted competitive bids amounting to Rs 5,998.13 crore for the 2028 bond and Rs 29,947.86 crore for the 2035 bond.

Non-competitive bids were also fully accepted, amounting to Rs 1.86 crore and Rs 52.13 crore respectively. In the competitive bids institutions like companies, banks and others invest in securities by bidding at the fixed yield and the allotment is given to the lowest bidders. However, in non-competitive bids, retail investors and small institutions participate, and they do not quote a desired yield.

Both securities had full underwriting support from primary dealers. The entire notified amounts, Rs 6,000 crore for the 2028 bond and Rs 30,000 crore for the 2035 bond, were underwritten and accepted.

The weighted average yields were marginally lower at 5.7986 per cent and 6.3325 per cent respectively, indicating investor willingness to accept slightly lower returns, a sign of strong confidence in government securities.

Meanwhile, the next meeting of the Monetary Policy Committee (MPC) of RBI is scheduled to be held from August 5th to 7th, 2025. The market will be closely watching the outcome of the meeting for any changes in the interest rate stance or inflation projections.

The central bank plays a critical role in managing the government’s market borrowing programme through periodic auctions, maintaining financial stability, and ensuring adequate demand across the yield curve.

(From ANI)

Also Read: You Won’t Believe How Fast Global Beauty E-commerce Is Surging — 50% Boom By 2029!

Published by Aishwarya Samant
Published: July 28, 2025 13:30:46 IST
Tags: rbi

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