Weighted average SGS cut-off was unchanged at an elevated 8.12%; spread between 10-year SGS and G-sec yield dips mildly to 65 bps from 66 bps
Thematic Report
19 Oct 2026
In the auction of October 19, 2026, ~78% of the total borrowing was issued in longer tenors, ~18% in shorter tenors
and the balance ~4% in the 10-year bucket. The weighted average tenor of all SGS issued in the auction held on
October 19, 2026, declined to 16 years from 18 years last week.
The weighted average SGS cut-off was unchanged at
a high 8.12% in the auction held on October 19, 2026, compared to last week. Notably, the cut-off of Punjab’s 9-year
paper at 8.11% was 15 bps higher than the cut-off of Gujarat’s 9-year SGS (7.96%) and 7 bps higher than Rajasthan’s
10-year paper (8.04%).
