States’ borrowing cost dropped to an 11-week low on Tuesday, as the weighted average coupon rate on their debt fell 8 basis points to 7.61 per cent. As many as 13 states raised Rs 19,700 crore by selling bonds, or state government securities on Tuesday. After a gap of two weeks, the issuance was higher than the amount indicated for the week in the auction calendar, by 4 per cent, according to a note by Icra Ratings.

The weighted average cut-off of state bonds eased 8 bps to an 11-week low of 7.61 per cent on Tuesday from 7.69 per cent in the previous week. According to Icra Chief Economist Aditi Nayar, the coupon rate fell despite the increase in weighted average increase to 13 years from 11 years. Cumulatively, states have mopped up Rs 5.833 lakh crore from the market so far this fiscal, which is 34.3 per cent more than Rs 4.343 lakh crore raised in the year-ago period.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)