Key Points
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...
In spite of that, the weighted average cut-off eased by 3 bps to 7.32 per cent from the last auction..
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...
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States borrowing cost slips to 7.67 per cent
22, Nov, 23At the auction held on Tuesday, 11 states raised Rs 11,600 crore by selling state government securities (SGS), which trailed by over 22 per cent from the amount indicated for this week in the Q3 auction calendar at Rs 15,000 crore.
12 states raise record Rs 35,800 crore through securities auction
21, Mar, 23In the largestever state government securities auction so far this fiscal 12 states on Tuesday raised Rs 35800 crore at an average annualised price of 774 per cent
States borrowing cost falls to 32-week low of 7.40 percent
05, Mar, 24Eleven states raised Rs 28,000 crore from state government securities (SGS), which is 27 per cent lower than the Rs 38,200 crore indicated for this week in the auction calendar, according to a note by Icra Ratings. As a result, the weighted average cut-off eased by 4 bps to 7.40 per cent, the lowest in the past 32 weeks.
States' borrowing cost remains elevated at 7.69%
12, Dec, 23States continued to pay higher coupon rates to bond investors with average price remaining 7.69 per cent at the latest auction on Tuesday. So far, the states have taken Rs 5.67 lakh crore of debt so far this fiscal, which is 33.5 per cent more than what they had raised in the same week last fiscal when it had stood at Rs 4.22 lakh crore.
States' borrowing cost soars to 23-week high of 7.56%
03, Oct, 23The borrowing cost for Indian states has increased by 10 basis points to 7.56% at the first weekly debt auction of the third quarter. This is the highest rate in the past 23 weeks. Despite a decline in the average tenor to 13 years, the weighted average cost has risen. Additionally, the spread between the cut-off of 10-year state bonds and the new 10-year G-Secs yield has also increased slightly.
States borrowing cost rises 4 basis points to 7.41 pc
28, Jun, 23The rise in the average pricing is primarily due to an increase in the weighted average tenor to 16 years from 14 years, Icra Ratings said in a note. The spread between the 10-year state security and the 10-year Government of India security inched up to 34 bps.
States' borrowing cost decline marginally to 7.44 per cent
27, Feb, 24The borrowing cost for states fell to 7.44% in the debt auction, lower than the two-year high of 7.8% in January. This decline is attributed to the interim Union Budget and the fiscal deficit target. Issuance trailing, limited supply, and falling interest rates contributed to the decrease. The weighted average tenor increased, while the spread between cut-off rates declined.
States borrow a record Rs 32,800 crore, cost jumps by 7 bps to 7.68 pc
28, Feb, 23Fourteen states raised a record-high Rs 32,800 crore from the market by issuing state government securities (SGS), which is a sharp 59 per cent higher than the year-ago level, even though the amount is 8 per cent lower than indicated in the auction calendar, Aditi Nayar, the chief economist & head of research at Icra Ratings said in a review note.
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