14 states, union territories raise Rs 35,544 crore at weekly bond auction

Amount higher than scheduled figure of Rs 32,532 crore, a first in seven weeks

Fourteen states and union territories (UTs) on Tuesday raised Rs 35,544 crore at the weekly state bond auction, higher than the scheduled amount of Rs 32,532 crore. States outpaced the scheduled weekly amount in terms of borrowing after seven weeks.

According to Reserve Bank of India (RBI) data, Karnataka raised the highest amount — Rs 6,000 crore through three bonds in the auction.

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Karnataka raised Rs 1,000 crore through a 10-year paper with a cut-off yield of 7.36 per cent, Rs 2,000 crore through a 14-year paper with a cut-off yield of 7.37 per cent, and Rs 3,000 crore through a 13-year paper with a cut-off yield of 7.37 per cent.

 

The cut-off yield on the 10-year state bond was set in a range of 7.36 per cent to 7.41 per cent, against 7.40 per cent to 7.42 per cent in the previous week.

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Meanwhile, the yield spread between the 10-year state development loans (SDLs) and the benchmark 10-year government bond stood between 34 basis points and 39 basis points.