By TIOL News Service

NEW DELHI, SEPT 07, 2018: THE Govt's total liabilities (including liabilities under the ‘Public Account’), as per provisional data, increased to Rs. 79,80,667 crore at end-June 2018 from Rs. 77,98,772 crore at end-March 2018. Public debt accounted for 89.3 per cent of total outstanding liabilities at end-June 2018 with internal debt accounting for 83.0 per cent of its share. Nearly 24.9 per cent of the outstanding dated securities had a residual maturity of less than 5 years. The holding pattern indicates a share of 42.7 per cent for commercial banks and 23.5 per cent for insurance companies by end-March 2018.

G-Sec yields have shown a hardening trend in Q1 of FY19 with the increase in weighted average yield of primary issuances to 7.76 per cent from 7.34 per cent since the last quarter reflecting the impact of both global and domestic developments. The manifestation of global developments being increase in crude oil prices, rate hike by the US Federal Reserve, rising geo-political tensions while domestic developments included weak Rupee, rise in CPI, demand-supply imbalance for shorter-tenor securities and weak demand from FPIs. The yield on 10-year benchmark G-Sec (7.17% GS 2028) closed higher at 7.90 per cent on June 29, 2018. A similar reflection is also observed in yield spreads of different maturities as at end-June 2018 compared to those prevailing at end-March 2018. Central Government dated securities continued to account for a major share of total trading volumes, with a share of 86 per cent in total outright trading and repo volumes in value terms during Q1 of FY 19.