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.
Source Name : Economic Times