State Government Finance

Weighted average SGS cut-off rose by 6 bps to 7.52% despite lower-than-indicated issuance

Thematic Report 13 Jan 2026

Eleven state governments raised Rs. 268 billion through state government securities (SGS) on January 13, 2026, 25.9% below the amount indicated in the Q4 FY2026 auction calendar. The weighted average SGS cut-off increased to 7.52% on January 13, 2026 from 7.45% last week, while the weighted average tenor of all SGS mildly rose to 14 years from 13 years. However, the spread between the cut-off yield of the 10-year SGS and the 10-year G-sec (06.48 GS 2035) eased to 88 bps as on January 13, 2026 from 91 bps last week.

EXHIBIT: Indicated and actual SGS issuances in FY2026 so far

Source: RBI, ICRA Research

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