Indian states raised 23,016.418 crore rupees in Monday’s auction of state government securities against 24,400 crore notified, the Reserve Bank of India said. The shortfall was concentrated, not general: Andhra Pradesh accepted no amount at all on the reissue of its 7.68 percent 2051 security, for which 1,000 crore had been notified, and Punjab accepted only 316.418 crore of the 700 crore notified on its 7.75 percent 2035 reissue, at a cut-off yield of 8.1097 percent.
Every other borrower was filled in full. Maharashtra was the largest issuer, taking 8,000 crore across four lines at cut-off yields from 7.9794 percent on its 2034 reissue to 8.1845 percent on the 2054. Madhya Pradesh took 4,500 crore, Rajasthan 3,500 crore, and Telangana 2,000 crore. The cheapest money in the auction was Madhya Pradesh’s four-year line at 7.77 percent and the dearest was Rajasthan’s 16-year line at 8.23 percent, with Jammu and Kashmir’s 2044 reissue at 8.1980 percent close behind.
The pattern matters two weeks into a tightening cycle. The Reserve Bank raised the repo rate to 5.50 percent on October 7, and state cut-offs clustered around 8 percent leave spreads of roughly 250 basis points over the policy rate at the long end. A borrower that rejects every bid at those levels is signalling it would rather wait than lock in the price, and the minutes of the October monetary policy committee meeting, due Wednesday, will show how the central bank itself is reading that trade-off.