Eleven state governments raised Rs. 250 billion through state government securities (SGS) on September 23, 2025, a sharp 24% above the amount indicated in the Q2 FY2026 auction calendar for this week. Notably, Maharashtra did not accept any bids for the notified amount of Rs. 20 billion, 20-21-year SGS in this auction. The weighted average SGS cut-off hardened to 7.34% on September 23, 2025 from 7.30% last Tuesday, amid a rise in the weighted average tenor to 16 from 13 years. While the spread between the cut-off yield of the 10-year SGS and the 10-year G-sec (6.33 GS 2035) eased to 82 bps as on September 23, 2025, from 91 bps in the last weekly auction, it remained elevated.

• Eleven state governments borrowed Rs. 250 billion through SGS on September 23, 2025, a sharp 24.4% above the Rs. 201 billion indicated for this week in the Q2 FY2026 auction calendar.
• Five states (Bihar, Chhattisgarh, Gujarat, Madhya Pradesh and Rajasthan) together raised Rs. 105 billion, despite not indicating their participation for this weekly auction. Further, Punjab and Telangana borrowed Rs. 45 billion of additional SGS. In contrast, six states (Assam, Goa, Haryana, Odisha, Sikkim and Uttar Pradesh) did not participate in this auction, even though they had planned to raise Rs. 61 billion on September 23, 2025.