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Informist, Friday, Mar. 27, 2026

 

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--Govt: To auction INR 8.20 tln of gilts in Apr-Sept 
--Govt: FY27 gilt issuance aim cut to INR 16.09 tln from INR 17.20 tln 
--Govt: Apr-Sept gilt issuance 51.0% of revised FY27 target 
--Govt: To auction INR 150 bln of green bonds in Apr-Sept 
--Govt: No change in tenures of bonds to be issued in Apr-Sept 
--Govt: Weekly gilt auction sizes to be INR 280 bln-INR 340 bln per wk H1 
--Govt to conduct 29.0% of Apr-Sept borrowing via 10-year bonds 
--Govt to conduct 8.1% of Apr-Sept borrowing via 3-year bonds 
--Govt to conduct 15.4% of Apr-Sept borrowing via 5-year bonds 
--Govt to conduct 8.1% of Apr-Sept borrowing via 7-year bonds 
--Govt to conduct 14.5% of Apr-Sept borrowing via 15-year bonds 
--Govt to conduct 7.3% of Apr-Sept borrowing via 30-year bonds 
--Govt to conduct 8.0% of Apr-Sept borrowing via 40-year bonds 
--Govt to conduct 9.6% of Apr-Sept borrowing via 50-year bonds 
--Govt: To carry out gilt switches, buybacks to smoothen redemption profile 
--Govt: To auction INR 1.27 tln of gilts in Apr 
--Govt: To auction INR 1.55 tln of gilts in May 
--Govt: To auction INR 1.26 tln of gilts in June 
--Govt: To auction INR 1.60 tln of gilts in July 
--Govt: To auction INR 1.26 tln of gilts in August 
--Govt: To auction INR 1.26 tln of gilts in September
--Govt: To auction INR 2.88 tln of Treasury Bills in Apr-Jun 
--Govt: To auction INR 1.44 tln of 91-day T-bills in Apr-Jun 
--Govt: To auction INR 720 bln of 182-day T-bills in Apr-Jun 
--Govt: To auction INR 720 bln of 364-day T-bills in Apr-Jun

 

NEW DELHI – The central government will borrow INR 8.20 trillion through dated securities in Apr-Sept, accounting for 50.97% of the revised gross market borrowing target of INR 16.09 trillion for 2026-27 (Apr-Mar). The Union Budget had laid out the gross borrowing aim at a record INR 17.20 trillion but the government had conducted gilt switches with the Reserve Bank of India and market participants after the Feb. 1 announcement, bringing down its scheduled redemptions.

 

The government did not add or remove any maturity bucket in the calendar from its prevailing pattern, a press release by the finance ministry Friday showed. It will also issue INR 150 billion of sovereign green bonds in Apr-Sept, the ministry said. These will be through three auctions of INR 50 billion each of the 30-year green bond.

 

On a net basis, the government's borrowing in Apr-Sept works out to be INR 5.73 trillion, which is 48.9% of the total net borrowing of INR 11.73 trillion for the year. The government bond maturity in the next financial year is slightly higher in the first half, at INR 2.47 trillion.

 

In the current financial year ending Tuesday, the Centre issued dated securities worth INR 14.61 trillion, the same as the revised estimate in the Budget. The Centre raised INR 11.33 trillion through the net issuance of dated securities.

 

The borrowing will be conducted in 26 weekly tranches of INR 280 billion-INR 340 billion, the calendar showed. The borrowing calendar is lower than market expectations of borrowing 53-55% of the full-year target in Apr-Sept, with traders expecting issuances of at least INR 8.50 trillion. In FY26, the government had borrowed 54.4% of its eventual full-year target in Apr-Sept.

 

"The government will carry out switching/buyback of securities to smoothen the redemption profile," the release said.

 

The government will issue bonds worth INR 1.27 trillion in April on a gross basis. It will also issue INR 1.26 trillion each in June, August, and September. The monthly borrowing will rise to INR 1.55 trillion in May and peak at INR 1.60 trillion in July.

 

The regularity of issuance is the the same as over the last two half years, with a bond of a particular tenure being issued once every four weeks. As is generally the case, the government will conduct the bulk of its borrowing through issuance of the 10-year bonds. According to the release, 29.0% of the bond issuances in Apr-Sept will be through sales of the 10-year paper. 

 

 

The five- and 15-year bonds will be the most widely issued securities after 10-year bonds, with the weighted average maturity of issuances shrinking as the share of ultra-long-term bonds is lower than in Oct-Mar and Apr-Sept last year. The share of bonds maturing in over 30 years has shrunk to less than 25% in Apr-Sept from 29.4% in Oct-Mar and 35.0% in the calendar for the first half of FY26. The share of sub-7-year bonds has risen to 31.6% in Apr-Sept from 28% in Oct-Mar and less than 25% a year ago.

 

The three-year and seven-year bonds will each see 8.1% of the issuance, with the five-year bond accounting for 15.4% of the total borrowing in the first half. The 15-year bond makes up 14.5% of the calendar. Sales of 30-year bonds will be 7.3% of the calendar, the 40-year bond will be 8.0%, and the 50-year gilt will comprise 9.6% of the Apr-Sept issuance.

 

The government said it could exercise the greenshoe option to retain an additional amount of up to INR 20 billion in each bond offered for sale at the weekly auction. Gilt switches will be conducted on the third Monday of every month. The Reserve Bank of India has also set the Centre's ways and means advances limit for Apr-Sept at INR 2.50 trillion, higher than INR 1.50 trillion in the same period last year.

 

The government also said it would issue INR 2.88 trillion worth of Treasury bills on a gross basis in Apr-Jun, compared with INR 2.47 trillion a year ago. Of the total borrowing, the government will sell INR 1.44 trillion of 91-day T-bills and INR 720 billion each of the 182-day and 364-day T-bills. The weekly auction size for 12 weeks in Apr-Jun will be INR 240 billion, the government said.

 

The following are key details of the government's borrowing for Apr-Sept:

 

	2026-27 (In INR billion)	2025-26 (In INR billion)
Apr-Sept gross borrowing	8,200.00	7,950.00
Full-year gross borrowing	16,090.29	14,610.00
% borrowing in Apr-Sept	50.97%	54.42%
Apr-Sept redemption	2,465.52	2,067.01
Apr-Sept net borrowing	5,734.48	5,932.99
Oct-Mar gross borrowing	7,890.29*	6,820.00*
Apr-Sept WMA limit	2,500	1,500

 

* Implied gross borrowing in FY27 based on Apr-Sept calendar and Budget estimates

 

End

 

Reported by Aaryan Khanna

Edited by Akul Nishant Akhoury

 

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