Mumbai: 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 percent. Twelve states have raised Rs 17,300 crore through state government securities in the auction held on Tuesday, which is a sharp 47 percent 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 percent from the last auction. The fall is also regardless of the fact that there was a mild rise in the weighted average tenor to 16 years from 15 years, ICRA Ratings said in a note.
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 and outreach at the agency, said in the note.
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