The interest rate for the Government of India Floating Rate Bond 2031 has been set at 6.64% per annum for the upcoming half-year. This is based on the average yield of prior T-Bill auctions.
Interest Rate on Government of India Floating Rate Bond 2031
The Reserve Bank of India has announced the interest rate for the Government of India Floating Rate Bond 2031, setting it at 6.64% per annum for the half-year period from June 7, 2026, to December 6, 2026. This rate is derived from the average of the Weighted Average Yield from the last three auctions of 182-Day T-Bills, plus a fixed spread of 1%.
This bond provides a viable investment option, particularly for those looking for regular returns linked to market conditions, thereby attracting interest from a variety of investors.
The establishment of this interest rate is significant for those managing financial portfolios or advising clients in fixed-income securities.
Industry practitioners should consider the implications of this bond rate setting on investment strategies, especially in the context of fluctuating interest rates.
Citations
- RBI Announcement
