Bond auction: 9 states borrow Rs 19,500 cr; Tamil Nadu tops the list

Nine states on Tuesday raised Rs 19,500 crore through the auction for state government securities against Rs 19,000 crore raised by 11 states last week. This week, the scheduled auction amount of state development loans (SDLs) was Rs 19,500 crore against the notified amount of Rs 19,930 crore, according to the borrowing calendar.  

The Reserve Bank of India (RBI) data showed that Tamil Nadu raised the highest amount of Rs 4,000 crore through two bonds. The state raised the amount of Rs 4,000 crore through two papers — Rs 2,000 crore through a 20-year paper with a cut-off yield of 7.43 per cent, and Rs 2,000 crore through a 30-year paper with the same cut-off yield. Meanwhile, the yield spread between the 10-year SDLs and the benchmark 10-year government bond stood at 29 basis points, same as the previous week.