Weighted common cut-off at G-Sec public sale eases 6 bps to 7.45 per cent

The weighted common cut-off on the State Authorities Securities (SGS) public sale on Tuesday eased to 7.45 per cent from 7.51 per cent eventually week’s public sale within the backdrop world tendencies in addition to the lately introduced buyback of Authorities of India securities (G-sec), based on ICRA.

Six states raised ₹9,900 crore via SGS on Might 7, 2024, a pointy 58 per cent beneath the ₹23,400 crore indicated for this week within the Q1 FY2025 indicative calendar of market borrowings by State Governments/ Union Territories.

The weighted common tenor on the public sale dipped to fifteen years from 16 years final week.

The unfold between the cut-off of the 10-year SGS and the 10-year G-sec (7.10 GS 2034) yield eased to 35 foundation factors (bps) on Might 7, 2024, from 38 bps final week, the ranking company mentioned.

The states that raised funds through SGS public sale have been Andhra Pradesh (₹3,000 crore), Himachal Pradesh (₹700 crore), Meghalaya (200 crore), Punjab (₹1,000 crore), Tamil Nadu (₹2,000 crore) and Telangana (₹3,000 crore).