In the largest auction so far in FY2026, 15 state governments raised Rs. 383 billion through state government securities (SGS) on January 27, 2026, although this is ~19% below the amount indicated in the Q4 FY2026 auction calendar. Owing to the large-sized auction, the weighted average SGS cut-off jumped to 7.52% on January 27, 2026 from 7.43% last week. However, the weighted average tenor of all SGS remained stable at 13 years. Additionally, the spread between the cut-off yield of the 10-year SGS and the 10-year G-sec (06.48 GS 2035) eased to 79 bps as on January 27, 2026 from 82 bps last week.

EXHIBIT: Indicated and actual SGS issuances in Q4 FY2026 so far

Source: RBI, ICRA Research