Government to Raise ₹36,000 Crore: Two Government Bonds Up for Auction on November 6, 50-Year Bond in Focus
Mumbai: The Central Government will auction two dated government securities this Friday, November 6, 2026, to raise ₹36,000 crore from the market. The Reserve Bank of India (RBI) shared the details in a press release issued on November 2. Both are re-issues, meaning additional sales of securities that have already been issued.
Source: RBI Press Release 2026-2027/1424, dated November 2, 2026
Which Two Bonds Are Being Auctioned?
According to the RBI, the auction includes these two securities:
| Bond | Maturity Date | Notified Amount |
|---|---|---|
| 7.06% GS 2041 | July 27, 2041 | ₹23,000 crore |
| 7.43% GS 2076 | January 19, 2076 | ₹13,000 crore |
| Total | ₹36,000 crore |
The 7.06% GS 2041 is a bond of roughly 15 years, while the 7.43% GS 2076 has an ultra-long tenure of about 50 years. The Government of India's specific notification for both, F.No.4(1)-B(W&M)/2026, was also issued on November 2, 2026.
Greenshoe Option: Size Could Go Up to ₹40,000 Crore
As per the RBI, the government has the option to retain additional subscription of up to ₹2,000 crore against each security. That means up to ₹4,000 crore extra across both bonds, taking the effective auction size to as much as ₹40,000 crore. If market demand is strong, the government may use this option.
Auction Process and Timeline
The auction will be held using the multiple price method, where successful bids are accepted at the price or yield quoted by the bidder. In a uniform price auction, everyone gets allotment at the cut-off rate, but that will not be the case here. Since these are re-issues, the auction will be price-based.
Schedule on November 6 (Friday):
- 9:00 a.m. to 9:30 a.m.: Primary Dealers can submit bids for underwriting the Additional Competitive Underwriting (ACU) portion
- 10:30 a.m. to 11:00 a.m.: Non-competitive bids
- 10:30 a.m. to 11:30 a.m.: Competitive bids
All bids must be submitted electronically on the RBI's Core Banking Solution, e-Kuber. Results will be announced the same day, and successful bidders must make payment on November 9 (Monday), which is also the settlement date. Physical bids will be accepted only in extraordinary situations such as a system failure, under the Business Continuity Plan (BCP).
"When Issued" trading in these securities will run from November 3 to November 6, 2026.
What Is in It for Retail Investors?
Under the RBI's guidelines, up to 5% of the notified amount of each security will be allotted to eligible individuals and institutions under the non-competitive bidding scheme. On that basis, roughly ₹1,150 crore of the 7.06% GS 2041 and about ₹650 crore of the 7.43% GS 2076 would be available in this category. These figures are calculated at 5% of the notified amounts.
- Minimum bid: ₹10,000 (face value), and in multiples of ₹10,000 thereafter
- Allotment rate: Non-competitive bidders get allotment at the weighted average rate of the successful bids in the competitive auction
- Where to bid: Individual investors can participate in the non-competitive scheme through the RBI Retail Direct portal (rbiretaildirect.org.in). Banks and Primary Dealers submit a single consolidated bid on behalf of their clients' orders
- Interest payment: Generally half-yearly, i.e. twice a year. The exact periodicity is given in the specific notification
Other Key Rules
- An investor can submit more than one competitive bid, but the total of all bids must not exceed the notified amount
- The RBI will determine the minimum price or maximum yield. Bids at a lower price or higher yield will be rejected
- The RBI has full discretion to accept or reject any or all bids, wholly or partially, without assigning any reason
- Securities will be credited to the SGL or CSGL account
- These bonds will be eligible for repo transactions
- Investment by non-residents is subject to the RBI's guidelines on the "Fully Accessible Route" (FAR)
Points for Investors to Note
Default risk in government bonds is considered very low, since the issuer is the Government of India. However, investors should also understand interest rate risk. When interest rates rise, the market price of a bond falls, and this effect is more pronounced in very long-tenure bonds like the 2076 security. If an investor holds the bond to maturity, the fixed coupon continues to be paid, but selling midway exposes them to price fluctuations.
The market will be watching the cut-off yields to be announced on Friday, which will signal demand for government bonds and the direction of interest rates. Before making any investment, assess your financial goals and risk appetite, or consult a financial advisor.
Source: Reserve Bank of India, Press Release 2026-2027/1424 (November 2, 2026)
