India's latest sovereign bond auction saw robust participation for the 2041 and 2076 maturities, clearing at yields of 7.4898% and 7.8015% respectively with no primary dealer support required.
Auction of the 7.06% GS 2041 received competitive bids for ₹64,287.950 crore, with a cut-off yield of 7.4898% and no devolvement on primary dealers.
Auction of the 7.43% GS 2076 received competitive bids for ₹27,815.000 crore, with a cut-off yield of 7.8015% and no devolvement on primary dealers.
The Reserve Bank of India successfully auctioned ₹36,000 crore in government securities, with the 7.06% GS 2041 and 7.43% GS 2076 bonds seeing strong demand. Both issues cleared without any devolvement on primary dealers, signaling stable market appetite for long-dated sovereign debt.
It means the market demand for the government bonds was sufficient to cover the entire notified amount, so primary dealers were not required to purchase any unsold portion of the auction.