States borrowing cost rises 6 bps to 7.83%

In contrast, the 10-year g-sec yield eased to 7.43 percent today from 7.47 percent last Tuesday whereas the weighted average cut-off of the 10-year state debt marginally rose to 7.83 percent from 7.79 percent.

Accordingly, the spread between the weighted average 10-year state bonds and g-sec yield increased to 41 bps from 32 bps, the agency said.

Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Puducherry, Tamil Nadu and Telangana did not participate in today's auction, even though they had indicated a combined borrowing of Rs 7,800 crore.

In contrast, Andhra Pradesh, Haryana and Uttarakhand borrowed Rs 2,000 crore, despite not having indicated their participation in the auction calendar for this week. Additionally, Gujarat and Punjab raised Rs 2,000 crore and Rs 300 crore more, respectively, than what they had indicated in the auction calendar.

As many as 24 states cumulatively issued bonds worth Rs 3 lakh crore since April, which is 11 percent lower than the year-ago level when they had raised Rs 3.4 lakh crore.