States are shelling out more for debt funds, with the weighted average cost for their debt auctions hardening by 9 basis points to touch 7.24%, the highest level so far this fiscal, during the auctions on Tuesday.
Compared with the previous week, the cost has gone up by 9 basis points (bps). The weighted average cut-off for States’ 10-year debt auctions or state development loans has hardened by 9 bps to 7.24% at today’s auctions as the drawdown was 6% more than indicated earlier, yet overall down by 12.3% on annualised basis, Icra chief economist Aditi Nayar said.
