States borrowing cost rises for third week, jumps 12 bps to 7.77%

The average cost of market borrowing for states rose 12 basis point to 7.77 per cent on Monday, increasing for the third consecutive week.
 

The cost of funds has seen a cumulative hike of 31 basis points (bps) during the past three weeks.
 

At the latest auction of debt, 10 states raised Rs 19,500 crore on Monday, drawing down the full amount indicated for this week.
 

The weighted average cut-off of the debt rose by 12 bps to 7.77 per cent from 7.65 per cent in the last auction, despite the weighted average tenor declining to 13 years from 15