Seven state governments raised Rs. 116 billion through state government securities (SGS) on November 4, 2025, a substantial ~40% below the amount indicated in the Q3 FY2026 auction calendar for this week. Notably, Maharashtra did not accept any bids for its notified amount of Rs. 20 billion for 25-30-year securities. The weighted average SGS cut-off rose by 3 bps to 7.36% on November 4, 2025 from 7.33% last week, amid an uptick in the weighted average tenor of all SGS to 19 years from 17 years during the same period. Nevertheless, the spread between the cut-off yield of the 10-year SGS and the old 10-year G-sec (6.33 GS 2035) eased to 61 bps as on November 4, 2025 from 65 bps in the last weekly auction. The spread with the new 10-year G-sec (06.48 GS 2035) yield declined to 67 bps from 72 bps in the same period.

EXHIBIT: Indicated and actual SGS issuances in Q3 FY2026 so far

Source: RBI, ICRA Research