Government of India to Auction ₹32,000 Cr of G-Sec 2035 on Jan 2 2026

Synopsis: The Government of India is going to reissue Rs 32,000 Cr government securities at an interest rate of 6.48 percent. With the auction happening on Jan 2 2026, the settlement or payment date is on Jan 5 2026.

The Government securities, which are commonly known as G-Secs, are debt instruments issued by the central government in order to finance budgetary deficits, infrastructure spending, and development programmes.

These bonds are considered among one of the the safest investment avenues in India as they are baked by the government. G-Secs are issued with varying maturities which could range from short-term Treasury Bills to other long-term dated securities, this could offer fixed interest payments and predictable returns to the investors.

What’s the News?

On Monday 29th December 2025, the Government of India (GoI) has announced the re-issue of the 6.48 percent Government Security 2035 with a notified amount of Rs 32,000 crore, while retaining the option to accept additional subscription of up to Rs 2,000 crore, which is to be conducted through a price-based auction using the multiple price method. 

The auction will be carried out by the Reserve Bank of India from their Mumbai Office on Friday (January 02, 2026), with up to 5 percent of the notified amount reserved for eligible individuals and institutions under the Non-Competitive Bidding Scheme. Additionally, the 6.48 percent Government Security 2035 will be eligible for ‘When Issued’ trading in line with RBI guidelines, which would enhance liquidity and price discovery in the secondary markets.

When and How to submit the Bid?

Both competitive and non-competitive bids must be submitted electronically via the RBI’s E-Kuber system, with the non-competitive bidding window open from 10:30 a.m. to 11:00 a.m., while competitive bidding will be accepted from 10:30 a.m. to 11:30 a.m. on the same day. The auction results will be announced on January 02, 2026, while the settlement or the payment date for the successful bidders is scheduled for January 05, 2026 (Monday). 

Historic Yield Rates

Talking about the Indian 10Y bonds, they have witnessed a dip in the yield rates since the end of the previous fiscal year. In 2025 the rates peaked hitting more than 6.8 percent in February 2025 , it even fell all the way down to 6.2 percent in May 2025. Currently, the 10-year yield rates are in the range of 6.58- 6.6 percent. 

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