 "Ahead of budget, 13 states raise Rs 25,800 cr in debt capital from markets")
In the second-highest auction so far in FY23, 13 states raised Rs 25,800 crore in debt capital from markets on Tuesday, paying a higher price as the cost rose by 4 basis points to 7.68 per cent.
The latest auction is 9 per cent higher on-year basis but was 19 per cent lower than indicated for this week in the auction calendar, according to a note by Icra Ratings.
The weighted average cut-off or the interest rate payable annually by the states, rose by a further 4 basis points to 7.68 per cent over the past auction, Icra Ratings chief economist and head of research & outreach Aditi Nayar said in the note.
She said while the weighted average tenor rose to 15 years from 13, the yield curve was inverted at the longer-end. Accordingly, the spread between the 10-year state bonds also called state development loans and the benchmark G-sec (Government Securities) yield rose to 33 basis points from 30 basis points last week.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)