Mumbai, Jul 18 (PTI) Lower-than-indicated supply of state government securities on Tuesday led to an 8 basis point fall in the borrowing cost, reducing it to a five-week low of weighted average cut-off at 7.36 per cent.

As many as nine states raised Rs 12,400 crore, which was 26 per cent lower than the amount indicated in the auction calendar, from the market at an average rate of 7.36 per cent, down from 7.43 per cent in the last weekly auction.

Also Read | US Masters T10: New York Warriors Acquired by Indian Origin Entrepreneurs Preet Kamal and Gurmeet Singh.

With the weighted average cut-off falling by 8 bps to 7.36 per cent, the spread between the cut-off of 10-year state debt and the G-sec yield declined to 29 bps from 33 bps last week, Icra Ratings said in a note.

The fall in cut-off is also due to the dip in the tenor to 13 years from 14 years, tightening the clustered yields and inversion in parts of the yield curve.

Also Read | Saira Banu Shares Captivating Glimpse of Dilip Kumar’s Most Enthralling Performance (View Pics).

(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)