Latest News | Despite Heavy Supply, Debt Cost Slips Marginally for States to 7.32 Pc
Get latest articles and stories on Latest News at LatestLY. Despite larger than notified supplies, the average cost for the states that hit the market on Tuesday will be less in terms of coupons, which slipped by 3 bps to 7.32 per cent.
Mumbai, Jun 6 (PTI) Despite larger than notified supplies, the average cost for the states that hit the market on Tuesday will be less in terms of coupons, which slipped by 3 bps to 7.32 per cent.
Twelve states have raised Rs 17,300 crore through state government securities in the auction held on Tuesday, which is a sharp 47 per cent higher than the indicated Rs 11,800 crore for this week in the auction calendar.
Also Read | Odisha Train Tragedy: List of Injured, Deceased Passengers Put On Websites; Check Details.
In spite of that, the weighted average cut-off eased by 3 bps to 7.32 per cent from the last auction. The fall is also regardless of the fact that there was a mild rise in the weighted average tenor to 16 years from 15 years, Icra Ratings said in a note.
The spread between the 10-year SGS and 10-year Central government security yield remained stable at 35 bps relative to the past week, Aditi Nayar, the chief economist and the head of research & outreach at the agency, said in the note.
Also Read | Indian Girls Aspire To Build World-Class Apps, Solve Problems.
(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)