States on Monday borrowed Rs 12,128 crore from the bond market at rates lower than what they had borrowed at earlier even as the 10-year G-sec yields have risen by a few basis points. The earlier plan by nine states was to borrow Rs 13,128 crore.
The cut-off yield for 10-year state development loans was at 7.60-7.65 per cent, whereas the 10-year government securities closed at 6.50 per cent.
This is a spread of 110-120 basis points, about 60-70 bps lower than the previous spread.
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First Published: Tue, April 14 2020. 01:03 IST