RBI Auctions Attract Strong Demand for Government Bonds

The Reserve Bank of India (RBI) has successfully concluded auctions for government securities with total notified amounts of Rs 30,000 crore and Rs 6,000 crore, underscoring strong investor interest in government bonds.

RBI data revealed that the securities included a 5.91% government security (GS) maturing in 2028 at Rs 6,000 crore, and a 6.33% GS maturing in 2035 at Rs 30,000 crore. Competitive bids for the 2028 bond reached Rs 24,453 crore from 98 bidders, while the 2035 bond attracted Rs 74,694 crore from 402 bidders.

The central bank accepted competitive offers of Rs 5,998.13 crore for the 2028 bond and Rs 29,947.86 crore for the 2035 bond. Non-competitive bids, typically from retail investors and small institutions, were also fully accepted. Both offerings were underwritten by primary dealers, with weighted average yields slightly reduced, indicating strong confidence in the government securities market.

Investor attention is now shifting to the upcoming Monetary Policy Committee meeting between August 5th and 7th, 2025. Stakeholders expect updates on interest rates and inflation projections, key factors influencing the RBI's market strategies. As the central authority, the RBI remains instrumental in managing the government's borrowing initiatives and stabilizing the financial landscape. (ANI)

(With inputs from agencies.)