Sixteen state governments raised Rs. 461 billion (including greenshoe) through state government securities (SGS) on February 24, 2026, ~4% above the amount indicated in the Q4 FY2026 auction calendar. Gujarat and Maharashtra accepted an additional amount of Rs. 16 billion through the greenshoe option. The weighted average SGS cut-off inched up to 7.47% on February 14, 2026 from 7.46% last week amid the weighted average tenor of all SGS increasing mildly to 13 years from 12 years during the same period. Additionally, the spread between the cut-off yield of the 10-year SGS and the 10-year G-sec (06.48 GS 2035) declined to 78 bps as on February 24, 2026 from 81 bps last week.

• Four states (Andhra Pradesh, Nagaland, Sikkim and Uttar Pradesh) raised Rs. 69 billion in this week’s auction even though they had not initially indicated that they would participate in this auction. Another six states (Gujarat, Karnataka, Maharashtra, Punjab, Rajasthan and Tamil Nadu) together raised Rs. 61 billion additional SGS beyond their planned amount. In contrast, five states (Himachal Pradesh, Madhya Pradesh, Odisha, Telangana and Uttarakhand) did not participate in this auction despite earlier indicating plans to raise Rs. 95 billion on February 24, 2026. Also, Bihar, Kerala, and West Bengal together under borrowed by Rs. 15 billion. The SGS issuance of Chhattisgarh, Goa and Haryana was in line with their indicated amount in this weekly auction.
• In the auction held on February 24, 2026, Rs. 216 billion (~47% of the total) was issued in longer tenors, Rs. 172 billion (~37% of the total) in shorter tenors and the balance Rs. 74 billion (~16% of the total) in the 10-year bucket.