Since April-June (Q1) 2010-11, Middle Office (MO) is bringing out a Quarterly Report on Debt Management. The current report pertains to the quarter January-March 2013 (Q4 of 2012-13).
For Fiscal Year 2012-13 (FY13), Gross and Net Market Borrowings were higher than previous year by 9.4 per cent and 7.1 per cent respectively. Auctions during Q4 of FY13 were held in accordance with the pre-announced calendar apart from the cancellation of one auction Rs.12,000 crore scheduled in February 2013. The weighted average maturity of dated securities issued during Q4 of FY13 at 13.50 years was higher than 13.38 years in the previous quarter while weighted average yield (cut-off) of issuance during the quarter declined to 7.95 per cent from 8.26 per cent in Q3. Weighted average yield of issuance during FY13 at 8.36 per cent was lower than 8.52 per cent in the previous fiscal year, while weighted average maturity at 13.50 years was higher than 12.7 years in FY12. The cash position of the Government during Q4 was comfortable and remained in surplus mode during the quarter.
The total public debt (excluding liabilities under the ˜Public Account™) of the Government at end-March 2013 increased on a quarter-on-quarter (QoQ) basis by 0.4 per cent (provisional) compared with an increase of 4.0 per cent in the previous quarter (Q3 of FY13). Internal debt constituted 91.1 per cent of public debt and marketable dated securities accounted for 75.0 per cent of total public debt. About 31 per cent of outstanding dated securities have a residual maturity of up to 5 years, which implies that over the next five years, on an average, slightly more than 6.0 per cent of outstanding stock needs to be rolled over every year.
In the secondary market, bond yields eased during the quarter due to policy easing by a total of 50 bps as well as OMO purchases by RBI, decline in inflation rate, slowdown in GDP growth rate and reduced supply of securities. Trading volumes increased significantly during the quarter driven by falling yields. Outright transactions during FY13 increased by 89.0 per cent over FY12.The annualised outright turnover ratio for Central Government dated securities for Q4 of FY13 went-up to 6.0 from 3.2 during the previous quarter.