Government raises Rs 1.2 lakh crore via dated securities in Jul-25, borrowing through T-bill auctions spike 22% on month

In July, the Reserve Bank of India raised 1.2 lakh crore on behalf of the government through dated securities, the same amount as in June. This included 42,000 crore through new issuances of three securities. The average cut-off yield in July edged up by 3 basis points to 6.54%, compared with 6.51% in June and 6.34% in May. Meanwhile, the average underwriting commission sought by primary dealers for government securities dipped to 0.18 per 100 in July, from 2.72 in June and 4.47 in May. As part of its liquidity injection measures, the RBI conducted two buyback auctions on June 5 and June 12, infusing a total of 49,600 crore into the system. In July, government borrowing through T-bill auctions rose by 22% month-on-month, reaching 1.46 lakh crore. Auction yields moved marginally on a sequential basis. The 91-day yield fell by 4 basis points, while the 182-day yield and the 364-day yield increased by 2 and 3 basis points respectively.