The Reserve Bank of India (RBI) partially cancelled the auction of the 6.20% 2029 government security on September 11, 2026. It accepted bids worth ₹45.06 billion, less than half of the planned ₹110 billion, marking the first partial debt sale cancellation in a year. This decision indicates the Indian authorities' cautious approach toward interest rates, aiming to curb any further rise in bond yields.
The yield on the three-year 6.20% 2029 bond had increased by 25 basis points over the past four weeks, reaching 6.4566% since its issuance. In related auctions, the RBI sold a seven-year government bond at a yield slightly above expectations. Meanwhile, the newly issued 30-year bond was auctioned at a cutoff yield broadly in line with market forecasts.
