Key Highlights
- RBI will auction ₹25,000 crore worth of dated securities on 11 July 2025.
- Two instruments: a new 7‑year GS and a re‑issued 7.09% GS maturing in 2074.
- Each bond may receive an additional ₹2,000 crore in extra subscriptions.
- Settlement and payment are scheduled for 14 July 2025.
Detailed Insights
New Government Security (GS) – ₹11,000 crore, 7‑year maturity (14 July 2032) with semi‑annual coupon.
Re‑issued 7.09% GS – ₹14,000 crore, 50‑year maturity (25 November 2074) retaining original coupon and maturity.
The auction employs a multiple‑price mechanism. Non‑competitive bids are accepted between 10:30 a.m. and 11:00 a.m.; competitive bids from 10:30 a.m. to 11:30 a.m. Primary Dealers can place bids earlier, from 9:00 a.m. to 9:30 a.m.
Results are announced the same day, and successful bidders must complete payment by 14 July 2025. The bonds will trade “When Issued” from 8 July to 11 July 2025.
Key Concepts
- Dated Security – a government bond with a fixed coupon and a predetermined maturity date.
- Re‑issue – selling an existing bond again while preserving its original terms.
- Multiple‑price Auction – each winning bidder pays the price they bid, rather than a single clearing price.
- Primary Dealer – a financial institution authorized to trade directly with the RBI during auctions.