Five state governments and one Union Territory (UT) raised Rs. 130 billion (lowest in 11 weeks) through state government securities (SGS) on January 20, 2026, only a third of the amount indicated in the Q4 FY2026 auction calendar. The weighted average SGS cut-off declined to 7.43% on January 20, 2026 from 7.52% last week, while the weighted average tenor of all SGS eased to 13 years from 14 years. Additionally, the spread between the cut-off yield of the 10-year SGS and the 10-year G-sec (06.48 GS 2035) softened to 81 bps as on January 20, 2026 from 88 bps last week.

• Ten states (Chhattisgarh, Goa, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Sikkim and West Bengal) did not participate in this auction despite earlier indicating plans to raise Rs. 226 billion on January 20, 2026. Additionally, Karnataka under-borrowed by Rs. 30 billion. The SGS issuance of Assam, Jammu & Kashmir, Odisha, Tamil Nadu and Uttarakhand in this weekly auction was in line with the indicated amount.
• The weighted average SGS cut-off dipped to 7.43% in the auction held on January 20, 2026 from 7.52% in the previous week, amid the weighted average tenor easing to 13 years from 14 years. Notably, the cut-off of Tamil Nadu’s 30-year SGS at 7.58% in this auction was below the cut-off 7.59-7.62% for 15-20 years papers of Assam, Jammu & Kashmir and Odisha.