Quarterly Report on Public Debt Management for the Quarter –January-March 2013 was released by the Union Finance ministry on 28 may 2013. 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 Fiscal Year 13 were held in accordance with the pre-announced calendar apart from the cancellation of one auction 12000 crore rupees scheduled in February 2013.
The weighted average maturity of dated securities issued during fourth quarter of Financial Year 2013 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 third quarter. Weighted average yield of issuance during Fiscal Year 2013 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 Financial Year 2012. The cash position of the Government during fourth quarter 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 Fiscal Year 2013 increased by 89.0 per cent over Fiscal Year 2012.The annualised outright turnover ratio for Central Government dated securities for fourth quarter of Fiscal year 2013 went-up to 6.0 from 3.2 during the previous quarter.