Seven state governments and one Union Territory (UT) raised Rs. 169 billion through state government securities (SGS) on September 8, 2026, a third of which (Rs. 56 billion) was raised by Maharashtra. Notably, the issuance was a sharp ~35% below the amount indicated in the Q2 FY2027 auction calendar. The actual issuance by states that had adopted the Benchmark Issuance Strategy (BIS) was in line with their indicated amounts for this auction, except for Rajasthan (borrowed an additional Rs. 5 billion) and Telangana (did not participate even though it had indicated to raise Rs. 25 billion). Haryana did not borrow a large Rs. 45 billion and Tamil Nadu did not raise Rs. 30 billion even though they had previously indicated they would participate in today’s auction. Jammu & Kashmir borrowed an additional amount of Rs. 4 billion.

• In the auction held on September 8, 2026, ~69% of the total borrowing was issued in longer tenors, ~25% in shorter tenors and the balance 7% in the 10-year bucket.
• The weighted average tenor of all SGS in the auction held on September 8, 2026 declined mildly to 17 years from 18 years last week. The weighted average SGS cut-off rose to 7.71% in the auction held on September 8, 2026, from 7.69% last week.