Govt's total gross liabilities grow 2.2% Q-o-Q to Rs 1,59,53,703 cr

The Centre raised Rs 4,08,000 crore through dated securities and Rs 2,71,415 crore after accounting for switches, according to the Public Debt Management Cell (PDMC) report covering the period of April-June (Q1) FY24.

The weighted average yield (WAY) for issuances in this quarter was 7.13%, compared to 7.34% in Q4 FY23.

The weighted average maturity (WAM) was 17.58 years for Q1 FY24 and 16.58 for Q4 FY23.

The PDMC under the Department of Economic Affairs, Ministry of Finance, has been regularly releasing quarterly reports on debt management since Q1 2010-11.

Treasury Bills of varying maturities were raised amounting to Rs 4,96,266 crore, with total repayments of Rs 3,07,278 crore.

The Central Government maintained a surplus cash position for most of April-June 2023.

Approximately 26.6% of outstanding dated securities had a residual maturity of less than 5 years.

The yield on the 10-year benchmark security decreased from 7.31% at the end of March 2023 to 7.12% at the close of June 2023, marking a 19 basis points softening during the quarter.

In the secondary market, trading activity was centered around the 7–10-year maturity range, largely due to heightened trading in the 10-year benchmark security.

Private sector banks dominated trading in this market, accounting for 22.59% of "Buy" deals and 25.00% of "Sell" deals.

They were followed by foreign banks, public sector banks, primary dealers, and mutual funds. Foreign banks, insurance companies, private sector banks, and primary dealers were net sellers, while public sector banks, cooperative banks, financial institutions, mutual funds, and others were net buyers in the secondary market.