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Centre Releases Quarterly Report On Public Debt Management

Meanwhile, the yields on government securities hardened in the secondary market because of the increase in the supply of G-secs during the quarter like in the corresponding quarter of FY21.

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The Ministry of Finance, on Tuesday, said that during Quarter (Q) 1 of Financial Year (FY) 22, the Centre had issued dated securities worth Rs 3,18,493 crore as against Rs 3,46,000 crore in Q1 of FY21, while repayment was at Rs 1,05,186 crore. 

The Ministry in a statement said, "The weighted average yield of primary issuances increased to 6.11 per cent in Q4 FY21 from 5.80 per cent in Q4 of FY21. The weighted average maturity of new issuances of dated securities was higher at 16.92 years in Q1 of FY22 as compared to 13.36 years in Q4 of FY21."

During April - June 2021, the government did not raise any amount via Cash Management Bills. Meanwhile, the RBI conducted three Open Market Purchase under G SAP 1.0 in addition to one special OMO involving simultaneous purchase and sale of government securities during the quarter. The net daily average liquidity absorption by RBI under Liquidity Adjustment Facility (LAF) including Marginal Standing Facility and Special Liquidity Facility was at Rs 4,94,351 crore during the quarter.

"Total liabilities (including liabilities under the ‘Public Account’) of the Government, as per provisional data, is Rs 120,91,193 crore at end-June 2021 as against Rs. 116,21,781 crore at end-March 2021. This indicates a quarter-on-quarter increase of 4.04 per cent in Q1 FY22. Public debt accounted for 91.60 per cent of total outstanding liabilities at the end-June 2021. Nearly 28.72 per cent of the outstanding dated securities had a residual maturity of less than 5 years. The ownership pattern indicates the share of commercial banks at 35.99 per cent and at 25.83 per cent for insurance companies at the end of June 2021," the official statement added. 

Meanwhile, the yields on government securities hardened in the secondary market because of the increase in the supply of G-secs during the quarter like in the corresponding quarter of FY21. 

"In the secondary market, trading activities were concentrated in a 3-7 year maturity bucket during the quarter mainly because of less trading observed in 10-year benchmark security due to low float. However, the yields were supported by the decision of MPC to keep the policy repo rate unchanged at 4 percent, to continue with an accommodative stance, and to conduct Open Market Purchase under G SAP 1.0 during the Q1 FY22," the statement further added.