Market borrowings by state governments and union territories remained larger than indicated for the third consecutive week. The 12 states and one state bagged Rs 25,800 crore in right this moment’s bond public sale, 19 per cent larger than the quantity indicated for this week within the Q3 FY24 public sale calendar, in accordance with ICRA.
States and union territories have indicated that they may gather Rs 2.37 trillion within the third quarter ending December 2023, in accordance with Reserve Financial institution of India knowledge.
Within the public sale, Maharashtra raised the best quantity of Rs 5,000 crore – Rs 2,500 crore by means of 10-year bonds with a lump sum yield of seven.71 per cent and Rs 2,500 crore by means of 11-year bonds with a lump sum yield of seven.70 per cent. Uttar Pradesh has raised Rs 4,500 crore, of which Rs 2,500 crore by means of 10-year bonds at 7.73 per cent and Rs 2,000 crore by means of 11-year bonds at 7.72 per cent. West Bengal has raised Rs 2,000 crore by means of 17-year bonds at 7.79 per cent.
The Union Territory of Jammu and Kashmir has collected Rs 900 crore by issuing paper with the longest period of 27 years. The ultimate yield on Johnson & Johnson paper was 7.58 %. Rajasthan has raised a complete of Rs 4,000 crore by means of bonds with maturities starting from 10 to 23 years.
The weighted common yield fell to 7.71 % for state authorities securities this week, from 7.72 % finally week’s public sale. Nonetheless, the unfold between the reduce yield of 10-year nation bonds and 10-year Authorities of India bonds widened to a 31-week excessive of 43 foundation factors on November 7, 2023, from 36 foundation factors final week. ICRA knowledge confirmed.
First revealed: 07 November 2023 | 8:25 pm he