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Informist, Friday, Sept. 25, 2026

 

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--Govt: To auction INR 7.86 tln of gilts in Oct-Mar 
--Govt: FY27 gilt issuance aim cut to INR 16.00 tln from INR 16.09 tln 
--Govt: To auction INR 150 bln of green bonds in Oct-Mar 
--Govt: Oct-Mar borrowing to be completed in 23 weekly auctions 
--Govt: Oct-Mar borrowing calendar ends in week ending Mar 5 
--Govt: Weekly gilt auction sizes to be INR 330 bln-360 bln per wk Oct-Mar 
--Govt: WMA limit for Oct-Mar fixed at INR 500 bln 
--Govt: To carry out gilt switches, buybacks to smoothen redemption profile 
--Govt to conduct 26.3% of Oct-Mar borrowing via 10-year bonds 
--Govt to conduct 6.9% of Oct-Mar borrowing via 3-year bonds 
--Govt to conduct 12.1% of Oct-Mar borrowing via 5-year bonds 
--Govt to conduct 9.1% of Oct-Mar borrowing via 7-year bonds 
--Govt to conduct 17.6% of Oct-Mar borrowing via 15-year bonds 
--Govt to conduct 9.2% of Oct-Mar borrowing via 30-year bonds 
--Govt to conduct 8.9% of Oct-Mar borrowing via 40-year bonds 
--Govt to conduct 9.9% of Oct-Mar borrowing via 50-year bonds 
--Govt: To auction INR 1.69 tln of gilts in Oct 
--Govt: To auction INR 1.36 tln of gilts in Nov 
--Govt: To auction INR 1.36 tln of gilts in Dec 
--Govt: To auction INR 1.73 tln of gilts in Jan 
--Govt: To auction INR 1.37 tln of gilts in Feb 
--Govt: To auction INR 350 bln of gilts in Mar 

 

NEW DELHI – The government aims to raise INR 7.86 trillion through the sale of dated securities in Oct-Mar, the finance ministry said in a release on Friday. This will bring down the government's gross market borrowing target in 2026-27 (Apr-Mar) to INR 16.00 trillion from INR 16.09 trillion announced in March, and substantially below the FY27 Budget estimate of INR 17.20 trillion. 

 

In the first half of the financial year, the Centre raised INR 8.135 trillion through bond sales, against a target of INR 8.20 trillion. The amount raised was marginally lower as the Reserve Bank of India accepted bids worth only INR 45.06 billion at an INR-110-billion auction of a three-year bond earlier this month. The government has so far completed 50.9% of the revised gross market borrowing target.

 

The issuance will be completed through 23 weekly auctions of INR 330 billion-INR 360 billion, with the Centre's borrowing programme ending on Mar. 5, similar to the previous year. The government plans to raise INR 150 billion through 30-year sovereign green bonds in the second half of the year, the same as in the first half, it said.

 

"The government will continue to carry out switching/buyback of securities to smoothen the redemption profile," the government said. On a net basis, the government will issue INR 6.26 trillion of gilts in Oct-Mar, higher than INR 5.38 trillion issued in the first half. This will bring the full year net market borrowing to INR 11.64 trillion, slightly lower than INR 11.73 trillion projected in the Budget.

 

As is generally the case, the government will conduct the bulk of its borrowing by issuing 10-year bonds. According to the release, 26.3% of the Oct-Mar bond issuances will be through the sale of 10-year paper. However, this is lower than the 29.0% share in the first half of the fiscal year.

 

In line with market feedback, the government has raised the share of the seven- and 15-year securities in the calendar, while reducing the share of bonds maturing up to five years due to the hefty redemptions already lined up in those tenures. The seven-year bond will make up 9.1% of the Oct-Mar calendar from 8.1% in Apr-Sept, while the 15-year bond will make up 17.6% of the issuance. This is the largest sequential increase, from 14.5% in the first half of the financial year.

 

Meanwhile, the three-year bond's share in the supply has fallen by 120 basis points to 6.9% in the second half. The five-year bond will also make up only 12.1% of the Oct-Mar issuance, down from 15.4% in Apr-Sept. The calendar gives the RBI room to conduct more open market operation auctions to sell gilts maturing up to 2032, as it has done in September, bond market dealers said. This month, the central bank has announced OMO auctions to sell INR 1 trillion of short-term gilts.

 

After two calendars where their share was reduced, long-term bonds saw their issuance rise in the Oct-Mar borrowing plan. The 30-year bond will now make up 9.2% of the calendar from 7.3?rlier. The rise in the share of the 40- and 50-year bond is marginal, rising to 8.9% and 9.9%, respectively. 

 

January will be the heaviest month of supply with INR 1.73 trillion slated, with October following at INR 1.69 trillion. November and December will both have INR 1.36 trillion of supply, inching up to INR 1.37 trillion in February. The lone auction in March will be for INR 350 billion. The pattern of issuance is unchanged from the previous calendar, where each tenure will be issued once every four weeks. 

 

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 weekly auctions. The RBI has fixed the ways and means advances limit for the second half at INR 500 billion to address temporary mismatches in government accounts, as against INR 2.50 trillion in Apr-Sept, the release said.

 

It also announced the calendar of Treasury bill issuances. The government will issue INR 2.99 trillion of T-bills on a gross basis through 13 weekly auctions of INR 230 billion each. The government will issue INR 80 billion each of the 91-day and 182-day T-bills and INR 70 billion of the 364-day T-bill weekly.

 

The following are key details of the government's borrowing for Oct-Mar:

 

	Oct-Mar FY27	Apr-Sept FY27	Oct-Mar FY26
	(In INR billion)	(In INR billion)	(In INR billion)
Gross borrowing	7,860.00	8,135.00	6,770.00
Redemption	1,602.49	2,755.72	1,889.64
Net borrowing	6,257.51	5,379.28	4,880.36
WMA limit	500	2,500	500

 

Following is the breakup of each tenure of dated security to be issued in the calendar, including green bonds:

 

	Oct-Mar 2026-27	Apr-Sept 2026-27	Oct-Mar 2025-26
3-year	6.9%	8.1%	6.6%
5-year	12.1%	15.4%	13.3%
7-year	9.1%	8.1%	8.1%
10-year	26.3%	29.0%	28.4%
15-year	17.6%	14.5%	14.2%
30-year	9.2%	7.3%	9.2%
40-year	8.9%	8.0%	11.1%
50-year	9.9%	9.6%	9.2%
Total borrowing amount (in INR billion)	7,860.00	8,200.00	6,770.00

 

End

 

Reported by Aaryan Khanna

Edited by Saji George Titus

 

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