Since Apr-June (Q1) 2010-11, Public Debt Management Cell (PDMC) (earlier Middle Office), Budget Division, Department of Economic Affairs, Ministry of Finance has been bringing out a quarterly report on debt management on a regular basis. The current report pertains to the quarter Apr-Jun 2019 (Q1 FY20).

During Q1 of FY20, the Central Government issued dated securities worth ₹2,21,000 crore as against ₹1,44,000 crore in Q1 of FY19. The weighted average maturity (WAM) of new issuances stood at 15.86 years in Q1 of FY20 (14.18 years in Q4 of FY19). The weighted average yield (WAY) of issuances for the same quarter was 7.21 per cent compared to 7.47 per cent in Q4 of FY19. During April-June 2019, the Central Government did not raise any amount through the issuance of Cash Management Bills. The net average liquidity injection by RBI under Liquidity Adjustment Facility (LAF) including MSF was ₹17,599.3 crore during the quarter.

The total liabilities (including liabilities under the ‘Public Account’) of the Government, increased to ₹88,18,392 crore at end-June 2019 from ₹84,68,086 crore at end-March 2019. Public debt accounted for 89.4 per cent of total outstanding liabilities at end-June 2019. Nearly 28.9 per cent of the outstanding dated securities had a residual maturity of less than 5 years. The holding pattern indicates a share of 40.3 per cent for commercial banks and 24.3 per cent for insurance companies at end-March 2019.

G-Sec yields have softened in Q1 of FY20 with the decrease in weighted average yield of primary issuances to 7.21 per cent from 7.47 per cent in Q4 of FY19 reflecting the impact of several developments namely reduction in policy repo rate twice under the LAF by 25 bps each, OMO purchase auction and a downward movement in the yield on US 10-year treasury bond. The yield on 10-year benchmark G-Sec (7.26% GS 2029) closed at 6.88 per cent on June 29, 2019. Central Government dated securities continued to account for a major share of total trading volumes in the secondary market, with a share of 86.0 per cent in total outright trading volumes in value terms during Q1 of FY20.

Link to the Quarterly Report on Public Debt Management Q1 FY20 (April to June 2019)

Public debt management shows increased dated securities issuance and longer maturities with softened yields and higher liabilities. Quarterly data for Apr-Jun 2019 show higher issuance of Central Government dated securities with increased weighted average maturity and lower weighted average yield; no Cash Management Bills were issued; net average liquidity injection occurred under the Liquidity Adjustment Facility. Total government liabilities rose by end-June, with public debt forming the majority; a notable share of dated securities had residual maturities below five years and commercial banks and insurance companies held dominant shares. Yield softening reflected repo rate reductions, OMO purchases, and international yield movements.