By TIOL News Service

NEW DELHI, MARCH 19, 2020: DURING Q3 of FY20, the Central Government issued dated securities aggregating to Rs. 1,92,000 crore as against Rs. 1,27,000 crore in Q3 of FY19. The weighted average maturity (WAM) of new issuances stood at 16.07 years in Q3 of FY20 (15.89 years in Q2 of FY20). The weighted average yield (WAY) of primary issuances of dated securities for the same quarter was lower at 6.86 per cent compared to 6.93 per cent in Q2 of FY20. During October-December 2019, the Central Government raised Rs. 50,000 crore through the issuance of Cash Management Bills. The net average liquidity absorption by RBI under Liquidity Adjustment Facility (LAF) including MSF was Rs. 2,32,263.39 crore during the quarter.

The total liabilities (including liabilities under the ‘Public Account') of the Government, increased to Rs. 93,89,267 crore at end-December 2019 from Rs. 91,01,484 crore at end-September 2019. Public debt accounted for 90.4 per cent of total outstanding liabilities at end-December 2019. Nearly 31.7 per cent of the outstanding dated securities had a residual maturity of less than 5 years. The holding pattern indicates a share of 39.1 per cent for commercial banks and 24.9 per cent for insurance companies at end-December 2019.

The yields on G-Secs moved in a narrow range during October-November 2019, before hardening in the first fortnight of December 2019. This reflected the impact of several developments namely reduction in the repo rate by 25 bps by the MPC of the Reserve Bank, contraction in IIP for the month of October 2019 and simultaneous purchase and sale of government securities under open market operations by the Reserve Bank in December 2019. Central Government dated securities continued to account for a major share of total trading volumes in the secondary market, with a share of 82.0 per cent in total outright trading volumes in value terms during Q3 of FY20.