RBI: Investors' confidence in government securities remains intact, RBI successfully sold bonds worth Rs 36,000 crore

Details

The Reserve Bank of India successfully auctioned government securities worth Rs 36,000 crore. The RBI had fixed the notified amount of Rs 6,000 crore for the security maturing in 2028 at 5.91 percent and Rs 30,000 crore for the security maturing in 2035 at 6.33 percent. Both auctions were fully subscribed. This reflects the strong demand of investors for government bonds.

Non-competitive bids were also fully accepted

According to the data, a total of Rs 24,453 crore worth of competitive bid proposals were received from 98 participants for 5.91 percent GS 2028. At the same time, bids worth Rs 74,694 crore were received through 402 bids for 6.33 percent GS 2035. After evaluation, RBI accepted competitive bids of Rs 5,998.13 crore for 2028 bonds and Rs 29,947.86 crore for 2035 bonds. Non-competitive bids were also fully accepted. Their amount was Rs 1.86 crore and Rs 52.13 crore respectively.

In competitive bids, companies, banks and other institutions invest in securities by bidding at a fixed return. In this, the allotment is given to the lowest bidders. However, retail investors and small institutional investors participate in non-competitive bids and they do not give the desired return.

The bonds have full underwriting support from primary dealers

The auction of both securities received full underwriting support from primary dealers. The entire notified amount of Rs 6,000 crore for the 2028 bond and Rs 30,000 crore for the 2035 bond was underwritten and accepted. This indicates that investors are willing to invest in government bonds despite low returns, which is a sign of deep confidence in these securities.

Investors are waiting for the upcoming RBI meeting

Meanwhile, the next meeting of the Monetary Policy Committee of the Reserve Bank of India is scheduled to be held between August 5 and August 7, 2025. The market will closely monitor the outcome of the meeting for any change in the interest rate stance or inflation expectations.

Fireside chat with Governor Shri Sanjay Malhotra at the Modern BFSI Summit hosted by Financial Express on July 25, 2025 at 10.25am https://t.co/l7NixAjmPV

— ReserveBankOfIndia (@RBI) July 25, 2025