Summary of this article
Government plans to auction Rs 33,000 crore across four securities.
Bidding opens October 30, with settlement scheduled for November 2.
Additional subscriptions could raise total borrowing to Rs 41,000 crore.
The Government of India will auction government bonds worth Rs 33,000 crore on October 30, 2026, according to a notification issued by the Reserve Bank of India (RBI) on October 26. The sale will involve four existing securities with different maturity dates, including a gold-linked bond and bonds with maturities extending up to 2056.
The government has also kept the option to accept additional subscriptions of up to Rs 2,000 crore for each security, over and above the notified amounts. This could take the total sale to Rs 41,000 crore if the full additional amount is accepted across all four government securities.
Four Bonds On Auction
The auction will include three conventional government securities and one Sovereign Gold Bond. The government has set aside Rs 9,000 crore for the 6.20 per cent Government Security 2029, which matures on August 17, 2029. The 6.57 per cent Government Security 2033 has the largest allocation of Rs 12,000 crore and will mature on August 17, 2033.
The 7.63 per cent Government Security 2056 has a notified amount of Rs 9,000 crore and will mature on September 15, 2056. The fourth security is the 7.50 per cent Government of India Sovereign Gold Bond 2056, worth Rs 3,000 crore, with a repayment date of April 27, 2056.
Together, the three conventional government securities account for Rs 30,000 crore of the total notified amount, while the Sovereign Gold Bond accounts for the remaining Rs 3,000 crore.
Bidding And Payment Dates
The auction will take place through the RBI's e-Kuber electronic platform on October 30. Non-competitive bids can be placed between 10:30 am and 11 am, while competitive bids will be accepted from 10:30 am to 11:30 am.
Under the non-competitive route, eligible investors can participate without quoting a yield or price, subject to the applicable rules. Competitive bidders, by contrast, submit bids specifying the price or yield at which they wish to buy the securities.
The RBI will use the multiple-price method to determine the auction results. Under this system, successful competitive bidders generally pay the prices they bid rather than a single common price.
The results are scheduled for October 30, while successful bidders must make their payments on November 2, 2026.
When-Issued Trading Starts Today
Trading in these securities on a when-issued basis will be permitted from today, October 27, till October 30. When-issued trading allows eligible participants to trade securities before their auction and settlement, subject to RBI rules.
Primary dealers can also submit bids for the Additional Competitive Underwriting portion between 9 am and 9:30 am on October 30 through the e-Kuber platform.
The sale will be conducted through the RBI's Mumbai office under the specific notification for the auction and the general rules governing government security sales.
