INSUBCONTINENT EXCLUSIVE:
MUMBAI: Three investors that may have included state governments bought Treasury Bills worth Rs 10,500 crore a day before the central bank
borrowing costs.
The bills were sold in non-competitive bids that typically draw interest for Rs 2-10 crore worth of debt papers
In the recent past, only on two occasions the size of bids crossed Rs 1,000 crore.
Three state governments may have invested in the 364-day
papers, multiple market sources told ET, which could not independently verify the names of those states.
Email query sent to the Reserve
Those papers yielded 6.78%.
On Tuesday, 19 states collectively raised Rs 24,956 crore by selling bonds, popularly known as state development
Uttar Pradesh raised the highest at Rs 3,000 crore, while Bihar, Karnataka, and Haryana mopped up Rs 2,000 crore each.
States normally bunch
up their borrowings toward the end of the financial year as they look to exhaust their limits
cut, Treasury Bills rallied about 15-20 basis points in the past two trading sessions
The newly issued one-year paper yielded 6.55% Friday, translating into mark-to-market notional gains for investors, dealers said.
Under
Nepal Rastra Bank is one such overseas regulator investing in Indian sovereign papers
Nepal imports oil from Indian refineries
in January 2018 was for Rs 9,700 crore of sovereign papers yielding 6.58%
demonstrated great skills as they came just before the rate cut
