Public debt management: issuance below calendar, yields hardened and maturities shortened amid liquidity pressures.
Central Government borrowing in July-September 2022 involved issuance of dated securities below the notified calendar amount, with primary yields hardening and weighted average maturity of new issuances shortening. No cash management bills were issued and RBI did not conduct open market operations; liquidity absorption under LAF was substantial. Total gross liabilities rose quarter on quarter, public debt increased its share of liabilities, and a significant share of outstanding dated securities had residual maturities under five years.