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Informist, Thursday, Sept. 24, 2026

 

--Fin min official: Likely to release H2 borrowing calendar Fri

 

By Sagar Sen

 

NEW DELHI – The government is likely to release the borrowing calendar for dated securities for Oct-Mar on Friday, according to a senior finance ministry official. Senior officials from the finance ministry and the Reserve Bank of India will meet Friday to finalise the issuance pattern of dated securities after having received market feedback earlier this month.

 

The Centre was scheduled to issue INR 8.20 trillion via dated securities in Apr-Sept, around 51% of its revised gross borrowing aim of INR 16.09 trillion for the financial year 2026-27 (Apr-Mar). It is likely to fall slightly short of that aim as it accepted bids worth only INR 45.06 billion at the INR 110-billion auction of a three-year bond earlier this month. Other than that, the borrowing programme has gone smoothly in the first half of FY27 with no auctions being cancelled, no other bids being accepted for lower-than-notified amounts, and no devolvements or greenshoes.

 

In a note Wednesday, ICICI Securities Primary Dealership said it does not see an increase in the government's net short-term or dated security borrowing in FY27. The assumption is based on higher small savings collections making up for a slightly larger fiscal deficit in absolute terms. This would put the second half borrowing calendar size at around INR 7.9 trillion. However, the government has pre-paid around INR 290 billion of gilts maturing in Oct-Mar through switches and buybacks in Apr-Sept. Consequently, it may announce a calendar of around INR 7.6 trillion while keeping its gross borrowing aim unchanged.

 

The last scheduled auction in the current calendar is on Friday, where the government will sell INR 340 billion of the 10-year benchmark 6.94%, 2036 bond. The first auction in the Oct-Mar calendar is likely to be on Oct. 1, a Thursday, as Indian financial markets will be shut Oct. 2 for Gandhi Jayanti.

 

Bond market dealers do not expect a significant change in the borrowing pattern from Apr-Sept, with each of the tenures likely to be issued once in four weeks. Sovereign green bonds of up to INR 250 billion may also be present, they said. Some banks and insurers had suggested the introduction of a 20-year tenure in line with global markets but the suggestion may not be accepted because of the expectation of low liquidity in the segment, dealers said.

 

Currently, the Centre issues bonds maturing in three, five, seven, 10, 15, 30, 40, and 50 years. Traders had varying views on the weightage of each segment. Banks had initially asked for greater supply of bonds maturing in three to seven years but no longer seek more of these securities after the RBI announced open market operation auctions to sell bonds worth INR 1 trillion in September.

 

The 10-year bond, which made up 29.0% of the calendar, may see a slight reduction in its share of supply, which may be moved to the 15-year segment, dealers said. The 10-year benchmark gilt yield has risen 8 basis points so far in FY27 to 7.11% at 1610 IST due to the impact of the war in West Asia. The supply of bonds maturing in 30-50 years is unlikely to be tweaked significantly after a sharp reduction in this share in the last three half-yearly calendars, they said.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Written by Aaryan Khanna

Edited by Rajeev Pai

 

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