The weighted average cut-off at the auction of State Government Securities (SGS) remained elevated at 7.72 per cent (highest in FY2024 so far) on December 5, 2023, in line with last week, according to ICRA.

The credit rating agency said this was despite the weighted average tenor declining to 12 years from 13 years during the same period and the borrowing moderating from the previous week’s level.

Moreover, the spread between the cut-off of 10-year SGS and the 10-year Government Security (7.18 GS 2033) yield inched up to 46 basis points (bps) on December 5, 2023, from 45 bps last week.

Nine state governments and one Union Territory (UT) raised ₹15,100 crore through auction of SGS’ on December 5, 2023, a sharp 43 per cent lower than the amount indicated for this week in the Q3 (October-December) FY2024 auction calendar.