In the auction held on December 23, 2025, Rs. 167 billion (~50% of the total) was issued in longer tenors, Rs. 120 billion (~36% of the total) in shorter tenors and the balance Rs. 50 billion (~15% of the total) in the 10-year bucket. Despite this, the share of longer tenor issuances has declined to 53% in December 2025 so far from 61-79% in the previous months of the ongoing fiscal.  

The 10-year G-sec (06.48 GS 2035) yield rose by 6 bps to 6.63% on December 23, 2025 from 6.57% last week, amid market concerns over the anticipated large supply of government bonds in Q4 FY2026. However, the 10-year SGS yield jumped to 7.49% from 7.29% during the same period. Accordingly, the spread between the two widened to 86 bps on December 23, 2025 from 71 bps last week. The cut-off of Punjab’s 10-year SGS was 7.72%, higher than the cut-off of Karnataka (7.42%), Maharashtra (7.35%), Tamil Nadu (7.42%) and Rajasthan’s (7.54%) 10-year SGS. Accordingly, the inter-state spread of the 10-year SGS remained wide around an unusually high 18-37 bps.

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