Research Report

Thirteen state governments raised Rs. 300 billion through state government securities (SGS) on October 13, 2026, a mild ~4% below the amount indicated in the Q3 FY2027 auction calendar. Notably, Gujarat did not accept any bids for its 12-year (Rs. 10 billion) paper and Assam partially accepted bids for its 11-year security (Rs. 8 billion vs. Rs. 10 billion). In today’s SGS auction, nearly 41% of the total issuance amount was raised by Tamil Nadu (Rs. 70 billion) and West Bengal (Rs. 54 billion).

• In the auction of October 13, 2026, ~78% of the total borrowing was issued in longer tenors, ~15% in shorter tenors and the balance ~7% in the 10-year bucket. The weighted average tenor of all SGS issued in the auction held on October 13, 2026 rose to 18 years from 16 years last week. The weighted average SGS cut-off jumped to 8.12% (highest since 2019) in the auction held on October 13, 2026, from 7.96% last week, reflecting a broader trend of hardening yields in the bond market.
• The benchmark 10-year G-sec (06.94 GS 2036) yield spiked by 17 bps to 7.37% on October 13, 2026 from 7.19% the previous Tuesday, following the Reserve Bank of India’s (RBI) liquidity withdrawal measures amid firm global yields.