10-year bonds issued by some states cross 7% yield mark, shows data

State development loan yields are rising in tandem with Centre's bond yield

The yields on 10-year bonds issued by some states crossed the 7 per cent mark, which is more than 40-basis-point increase since before the Budget, indicating the struggle for the states ahead to keep their interest costs in check. 

While Punjab paid 7.05 per cent coupon for its 10-year bond, Mizoram paid 7.04 per cent for its 12-year papers and Rajasthan borrowed 10-year money at 6.95 per cent. 

Rajasthan, on February 2 auction, had raised 10-year money at 6.85 per cent after the Centre’s Budget where Rs 12 trillion of borrowing was announced for the next fiscal year, and Rs 80,000 crore