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Bond auction: 11 states borrow Rs 19,000 cr; Tamil Nadu tops the list

The Reserve Bank of India (RBI) data showed that Tamil Nadu raised the highest amount of Rs 5,000 crore through two bonds

Bonds, Govt bond

Illustration: Ajay Mohanty

Anjali Kumari Mumbai

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Eleven states on Tuesday raised Rs 19,000 crore through the auction for state government securities against Rs 12,430 crore raised by nine states last week.

This week, the scheduled auction amount of state development loans (SDLs) was Rs 19,000 crore against the notified amount of Rs 24,250 crore, according to the borrowing calendar.  

The Reserve Bank of India (RBI) data showed that Tamil Nadu raised the highest amount of Rs 5,000 crore through two bonds.

Of this, Rs 3,000 crore was through a 20-year paper with cut-off yield of 7.36 per cent and Rs 2,000 crore was through a 10-year paper with a cut-off yield of 7.39 per cent.

Meanwhile, the yield spread between the 10-year SDLs and the benchmark 10-year government bond stood at 29 basis points.

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First Published: Jul 25 2023 | 6:25 PM IST

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