In the largest auction in FY2026 so far, 19 state governments and two Union Territories (UTs) raised Rs. 575 billion (including greenshoe) through state government securities (SGS) on March 17, 2026, a sharp ~31% above the amount indicated in the Q4 FY2026 auction calendar. The issuance was lower than the notified amount on account of non-acceptance/partial acceptance of bids by Assam, Jharkhand and Uttarakhand. The weighted average SGS cut-off rose to 7.52% on March 17, 2026 from 7.48% last week, amid a mild increase in weighted average tenor 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 mildly to 75 bps as on March 17, 2026 from 76 bps last week.

• Nineteen state governments and two UTs raised Rs. 575 billion through SGS on March 17, 2026, a sharp ~31% above the Rs. 438 billion initially indicated for this week. Assam and Uttarakhand partially accepted bids for their 4-12-year papers (Rs. 15 billion against the notified Rs. 29 billion), while Jharkhand did not accept any bids for its 14-year SGS (Rs. 10 billion). Gujarat and Maharashtra accepted an additional Rs. 15 billion through the greenshoe options.
• Ten states (Gujarat, Jharkhand, Karnataka, Kerala, Maharashtra, Nagaland, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand) together raised Rs. 172 billion additional SGS beyond their planned amount in this auction. Five states/UT (Assam, Jammu & Kashmir, Puducherry, Sikkim and Tripura) raised Rs. 24 billion in this week’s auction even though they had not initially indicated that they would participate in this auction. In contrast, Madhya Pradesh, Rajasthan and West Bengal raised Rs. 42 billion less SGS. Manipur and Punjab did not participate in this auction despite earlier indication to raise Rs. 17 billion on March 17, 2026. The SGS issuance of Chhattisgarh, Haryana and Goa was in line with their indicated amount in this weekly auction.