Twelve state governments borrowed Rs. 291 billion through SGS on September 2, 2025, a sharp 35.9% higher than the Rs. 214 billion indicated for this week in the Q2 FY2026 auction calendar. With this, the total issuance in Q2 FY2026 so far, is now only 2.4% lower than the indicative amount for this period.

Six states (Andhra Pradesh, Assam, Bihar, Kerala, Punjab and Rajasthan) together borrowed additional SGS worth Rs. 72 billion in the auction on September 2, 2025. Manipur, Meghalaya and Telangana together raised Rs. 69-billion SGS, despite not indicating their participation in the first weekly auction of September 2025. In contrast, five states (Chhattisgarh, Goa, Himachal Pradesh, Uttarakhand and West Bengal) did not participate in this auction, even though they had planned to raise Rs 44 billion. Notably, Punjab only partially accepted bids for its 7-year paper (Rs. 19 billion vs. Rs. 20 billion). Additionally, Gujarat and Maharashtra (did not accept bids for 29 and 30-year papers against the notified amount of Rs. 15 billion) borrowed Rs. 20 billion less SGS. Additionally, Tamil Nadu did not accept bids for its 30-year paper for the notified amount of Rs. 10 billion.

EXHIBIT: Spread between weighted average cut-off of 10-year state and GoI G-sec yield