In the largest auction so far in FY2026, 14 state governments raised Rs. 476 billion (including green shoe) through state government securities (SGS) on February 10, 2026, ~11% above the amount indicated in the Q4 FY2026 auction calendar. However, this was 5% below the notified amount on account of non-acceptance of bids by Maharashtra, Madhya Pradesh and West Bengal. The weighted average SGS cut-off jumped to 7.63% on February 10, 2026 (highest since February 2024) from 7.51% last week amid the increase in G-sec yields and a large-sized auction. However, the spread between the cut-off yield of the 10-year SGS and the 10-year G-sec (06.48 GS 2035) was unchanged at 83 bps as on February 10, 2026 from last week.

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

Source: RBI, ICRA Research