Neutral impactEconomy
Rate of Interest on Government of India Floating Rate Bond 2028
RBI 1 hr ago·1 Oct 2026, 12:30 pm
Economy RBI
The Government of India has announced the interest rate for its Floating Rate Bond 2028 (FRB 2028) for the upcoming half-year. The coupon rate has been set at 6.45% per annum, applicable from October 4, 2026, to April 3, 2027. This rate is calculated as the average yield of the last three 182-day Treasury Bill auctions, plus a fixed spread of 0.64%. This mechanism ensures the bond's interest rate adjusts regularly to reflect current market conditions.
For investors, this announcement provides clarity on the returns for this specific government security. The floating-rate nature of the bond offers a hedge against interest rate volatility, as the coupon adjusts with market trends. It is a safe, government-backed investment option that typically appeals to risk-averse investors looking for steady income.
Investors should watch the upcoming 182-day T-Bill auctions to understand how the base rate for the next half-year will be determined. The movement of these yields will directly impact the interest rate on the FRB 2028, influencing the bond's attractiveness in the market.
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- Category: Economy.
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