New Delhi: Six Indian states have collectively raised Rs 10,750 crore through State Government Securities (SGS), according to data released by the Reserve Bank of India (RBI) on Tuesday.

Among the participating states, Bihar accepted Rs 2,000 crore at a yield of 7.01 per cent for a 12-year tenure. Kerala raised Rs 1,000 crore at 7.10 per cent for 20 years, while Manipur secured Rs 250 crore at the same yield for a 15-year period. Tamil Nadu issued Rs 1,000 crore at 7.07 per cent for a 30-year term, and West Bengal raised Rs 2,500 crore at 7.11 per cent for 19 years.

Maharashtra, meanwhile, re-issued four securities of Rs 1,000 crore each, spread across different maturities. The first, maturing in 2047, was re-issued at a yield of 7.12 per cent. A second bond, originally issued at 7.09 per cent and maturing in 2048, was re-issued at 7.13 per cent. The third Rs 1,000 crore security, maturing in 2049, was re-issued at 7.15 per cent, and the fourth, maturing in 2050, was re-issued at 7.16 per cent, up from its original issue rate of 7.09 per cent.

Earlier, on 9 July, seven states raised a total of Rs 13,300 crore in a separate round of SGS auctions. All participating states accepted the full notified amount during that auction.

Bond prices and yields typically move in opposite directions. As bond yields (interest rates) rise, prices fall, and vice versa. This inverse relationship is due to the way yield is calculated by dividing the bond’s coupon payment by its current market price. A drop in price increases yield, while a rise in price lowers it.

The RBI conducted these auctions as part of its regular borrowing schedule for states, designed to help meet capital expenditure and fiscal requirements. The data suggests strong investor demand across various tenors, with all states successfully raising their intended amounts without under-subscription. These auctions remain a crucial mechanism for states to fund infrastructure and development initiatives, while aligning with the fiscal roadmap set by the central bank.