Three-Phase ₹1 Lakh Crore Bond Auction Set for September 2026

In a bid to manage the persistent excess cash in India’s banking sector, the Reserve Bank of India will conduct a three‑phase bond auction totaling ₹1 lakh crore. The securities, part of the government’s FY 2028‑29 to FY 2031‑32 issuance program, will be sold via an Open Market Operation.

The schedule is as follows: - September 17, 2026 – ₹50,000 crore - September 21, 2026 – ₹25,000 crore - September 28, 2026 – ₹25,000 crore

Bids must be entered through the e‑Kubera platform between 9:30 am and 10:30 am on the first auction day, with the results released later that day. The auction adopts a multi‑security, multiple‑price method, offering participants flexibility in pricing.

This marks the RBI’s first pure OMO bond sale since the secondary‑market sale in September 2024 and follows earlier combined buy‑sell operations in FY 2020‑21 and 2021‑22. The announcement triggered a swift rise in bond yields, pushing the 10‑year benchmark to 7.035 % and the 5‑year to 6.6222 %.

The move aims to temper liquidity that grew after banks tapped an extraordinary foreign‑currency fundraising scheme, which bolstered foreign‑exchange reserves to record levels and pressed overnight rates below the repo ceiling.