Latest News | Borrowing Falls Sharply, 8 States Raise Rs 15,900 Crore, 45 Pc Less Than Indicated: Report
Get latest articles and stories on Latest News at LatestLY. Eight states raised Rs 15,900 crore from auctioning their debt, or state government securities, on Tuesday at a coupon of 7.42 per cent, 6 basis points (bps) less than the previous auction.
Mumbai, Aug 29 (PTI) Eight states raised Rs 15,900 crore from auctioning their debt, or state government securities, on Tuesday at a coupon of 7.42 per cent, 6 basis points (bps) less than the previous auction.
The debt raising of Rs 15,900 crore was nearly 45 per cent lower than the indicated amount for the week in the auction calendar, Icra Ratings said in a note.
Despite the increase in the weighted average tenor to 14 years from 11 years, the weighted average cut-off dipped to 7.42 per cent in the auction, down from 7.48 per cent in the auction last week, following softening in the yield of Government Securities (G-Secs) across tenors.
As a result, the spread between the cut-off of 10-year state government securities and the new 10-year G-Sec yield eased mildly to 29 bps from 30 bps last week, the agency said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)