The announcement was made via the Press Information Bureau (PIB), outlining the details for investors, institutions, and market participants preparing for the last major G-Sec auction of November. The re-issued securities span tenures from three years to more than three decades, offering a diverse set of investment options.
Breakdown of the Securities Offered
According to the official release, the Government will re-issue the following G-Secs:
- 5.91% Government Security 2028 – ₹9,000 crore
- 6.28% Government Security 2032 – ₹11,000 crore
- 7.24% Government Security 2055 – ₹7,000 crore
- 6.98% GOI SGrB 2054 – ₹5,000 crore
Each security also carries the option to retain an additional subscription of up to ₹2,000 crore. This means the total auction size could potentially rise if market demand proves strong.
Auction Timings and Bidding Process
RBI will conduct the auction using the E-Kuber system, its core banking platform used for government securities transactions. Under the rules, two types of bids will be accepted—competitive and non-competitive.
Timings for submission:
- Non-competitive bids: 10:30 AM to 11:00 AM
- Competitive bids: 10:30 AM to 11:30 AM
The auction results will be announced later the same day, with payment by successful bidders scheduled for December 1, 2025.
Allocation Under Non-Competitive Bidding
Up to 5% of the notified amount will be reserved for eligible investors under the non-competitive bidding facility. This includes individuals and certain institutions that prefer participation without specifying a price, ensuring smoother access to government bonds.
The mechanism is particularly beneficial for small and retail investors, as it allows them to acquire securities at the weighted average price of successful competitive bids.
Eligibility for “When Issued” Trading
The securities offered in this auction will be eligible for “When Issued” (WI) trading, as per RBI’s guidelines issued on July 24, 2018. WI trading allows market participants to trade securities even before the formal issuance date, increasing liquidity and aiding price discovery.
Why This Auction Matters
This auction is significant as it comes at a time when the bond market is witnessing high interest from domestic institutions, particularly insurance companies and pension funds. Long-term securities such as the 2054 and 2055 series are expected to attract strong bidding due to appetite for stable, long-duration assets.
Shorter-tenure bonds like the 2028 G-Sec may also see robust participation from banks looking to balance their portfolio mix before the end of the quarter.
Analysts note that the market will closely watch the cut-off yields, which could offer insights into investor outlook ahead of the next monetary policy review.
