Research Report

In the auction held on April 21, 2026, ~67% of the total issuance was in longer tenors, ~26% in shorter tenors and the balance 7% in the 10-year bucket. The weighted average tenor of all SGS declined to 15 years in the third weekly auction from 16 years last week. 

The weighted average SGS cut-off dipped by 8 bps to 7.73% in the auction held on April 21, 2026, from 7.81% last week. Notably, the cut-off of Punjab’s 12-year paper at 7.84% was higher than the cut off of 7.70% for Telangana’s 11-year SGS and 7.81% for Andhra Pradesh’s 30-year SGS. The 10-year G-sec (06.48 GS 2035) and SGS yield stood at 6.89% and 7.64%, respectively, on April 21, 2026. Accordingly, the spread between them eased to 75 bps compared to 78-82 bps in the last few auctions.