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Cut-off yields ease by 7-8 bps at State bond auction as borrowings taper

This week, spread between weighted average 10-year SDL and 10-year GOI bond yield was up slightly to 37 bps from 36 bps earlier

Imaging: Ajay Mohanty
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Imaging: Ajay Mohanty

Abhijit Lele Mumbai
The yields on 10-year state development loans (SDL) at Tuesday’s auction eased by 7-8 basis points while amounts raised by state governments continued to be lower than the indicative calendar.

Last week, the cut-off yields at Reserve Bank of India conducted bond auction had hardened by 5-6 basis points. It was the first auction after the central bank’s half a percentage point increase in the repo rate to 4.90 per cent.

RBI data showed the cut-off yield for 10-year SDL at 7.86-88 per cent as against 7.94-95 per cent on June 14, 2022. This week, the spread between the weighted

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First Published: Jun 21 2022 | 11:14 PM IST

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