India to Auction Rs 320 Billion Worth of GS 2035 Bonds on October 3

In a strategic move to manage fiscal needs and deepen the sovereign debt market, the Reserve Bank of India (RBI) has announced the sale of Rs 320 billion worth of Government Securities (GS) maturing in 2035. The auction is scheduled for October 3, 2025, and is expected to attract strong institutional interest amid stable macroeconomic indicators.

Key highlights of the bond auction:

1. The GS 2035 bonds are part of India’s long-term borrowing program aimed at funding infrastructure and welfare schemes  
2. The total issue size is Rs 32,000 crore, with competitive bidding to be conducted via RBI’s electronic platform  
3. The bonds will carry a fixed coupon rate, with final yield determined through the auction process  
4. Eligible participants include commercial banks, primary dealers, insurance firms, mutual funds, and foreign portfolio investors  
5. The auction will follow a uniform price method, ensuring transparency and fair allocation  
6. Settlement will occur on October 6, with successful bidders receiving credit in their Subsidiary General Ledger (SGL) accounts  
7. Analysts expect demand to be robust given the current liquidity surplus and favorable interest rate outlook  
8. The GS 2035 bonds offer a medium-term investment horizon, balancing duration risk with attractive returns  
9. This issuance is part of the government’s broader borrowing calendar for H2 FY26, which targets Rs 7.5 lakh crore  
10. The move aligns with India’s fiscal consolidation roadmap and supports capital market development

Sources: Reuters India, RBI Bulletin, Business Standard, Economic Times Markets