States are spending more for debt funds, with their weighted average cost for debt auction rising 9 basis points to 7.24%, the highest level so far this fiscal, during the auction on Tuesday.
The cost has increased by 9 basis points (bps) compared to the previous week. States’ weighted average cut-off for 10-year loan auctions or state development loans increased by 9 bps to 7.24% in today’s auction as the drawdown was 6% higher than previously indicated, yet overall on an annual basis fell by 12.3%. Aditi Nair, Chief Economist, ICRA said.
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