The Financial Express
The Centre’s total liabilities rose 2.6% to Rs 150.95 trillion at the end of December quarter from Rs 147.19 trillion at the end of the September quarter.
According to the public debt management report issued by the finance ministry on Saturday, public debt accounted for 89% of the total outstanding liabilities in the December quarter, compared with 89.1% in the September quarter.
During Q3FY23, the Centre raised Rs 3.51 trillion through dated securities, against the notified amount of Rs 3.18 trillion in the borrowing calendar. During the quarter an amount of Rs 85,377.9 crore due for redemption was repaid on maturity date, it said.
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The weighted average yield of primary issuances hardened to 7.38% in Q3FY23, from 7.33% in Q2 of FY23, it added. The weighted average maturity of new issuances of dated securities elongated to 16.56 years in Q3FY23 against 15.62 years in Q2FY23.
During the December quarter, the government did not raise any amount through the Cash Management Bills. Reserve Bank of India (RBI) did not conduct open market operations for government securities during the quarter.
The report further said that the net daily average liquidity absorption by RBI under the Liquidity Adjustment Facility (LAF), including Marginal Standing Facility and Special Liquidity Facility, was at Rs 39,604 crore during the quarter.
The yield on the 10-year benchmark security softened from 7.40% at the close of the quarter on September 30, 2022, to 7.33% at the close on December 30, 2022, softening by 7 basis points during the quarter.
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On December 7, 2022, the monetary policy committee (MPC) of RBI decided to hike the policy repo rate by 35 bps from 5.90% to 6.25%, largely with an intention to contain inflation. On February 8 this year, the MPC hiked the key benchmark policy rate by 25 basis points to 6.5%, citing sticky core inflation.
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