Public Debt Management...Section 2– Debt Management - Primary Market Operations A. Government...

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Public Debt Management quarterly report

APRIL – june 2017

Government of India Ministry of finance

Budget Division Department of economic affairs

AUGUST 2017 www.finmin.nic.in

http://www.finmin.nic.in/

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CONTENTS

Section

Page No.

Introduction

1

1

Macroeconomic Developments 2

2

Debt Management - Primary Market Operations 6

3

Cash Management 9

4

Trends in Outstanding Public Debt 11

5

Secondary Market 16

III

List of Tables and Charts

List of Tables Table No. Title Page No.

1 Fiscal Outcome during April-June 2017-18 6 2 Issuance of Dated Securities 7 3 Primary Issuance by Maturity Buckets, Q1 of 2017-18 7 4 Issuance of Treasury Bills 8 5 Repayments and Issuance of Treasury Bills in Apr - June 2017 10 6 Composition of Public Debt 11 7 Maturity and Yield of Central Government's Market Loans 12 8 Maturity Profile of Outstanding GoI Dated Securities 13 9 Ownership Pattern of Government of India Dated Securities 14 10 Transactions in Government Securities 18 11 Top 10 Traded Securities 19 12 Maturity Pattern of Outright Transactions 19 12(a) Share of various categories of participants in G-Sec trading 20 13 Category wise – Buying and Selling 21

List of Charts Chart No. Title Page No.

1 Growth Rate in GDP at constant (2011-12) prices 2 2 Inflation Rate Based on WPI and CPI 3 3 Growth Rate in IIP 3 4 Monthly Exports and Imports 4 5 Foreign Investment Flow and Exchange Rate 5 6 Liquidity Infusion in the System 9 7 Holding Pattern of Outstanding Government Securities 14

8 Movement of 10-year G-Sec Yields 16 9 Government Bond comparative Yield Curve 16 10 Comparative Treasury Bill Yield Curve 17 11a Progressive Outright volume-Instrument composition 18 11b Composition of Instruments in outright and repo volume 18 12a Maturity wise Trading Activity - Apr-June 17 20 12b Maturity wise Trading Activity - Jan-Mar 17 20 13 Category wise total 20

List of Statements Statement No. Title Page No.

1 Issuance of Dated Securities During Q1 of FY18 i 2 Treasury Bills Issued During Q1 of FY18 ii 3 List of Dated Securities Outstanding at end-June 2017 iii 4 5 6

Maturity Profile of Government Securities at end-June 2017 Calendar for Auction of Treasury Bills during July-September 2017 Calendar for auction of G-Sec during April – Sep 2017

v vi

vii

1

Introduction

The Middle Office for public debt management was set up in September 2008, in Department of

Economic Affairs, Ministry of Finance, Government of India. With the objective of enhancing

transparency of debt management operations, Middle Office, DEA began publishing on its

website a quarterly report, titled “Public Debt Management - Quarterly Report” from the first

quarter of the fiscal year 2010-11. The previous reports are available on the website of Ministry

of Finance (http://finmin.nic.in/reports/Public_Debt_Management.asp). This report pertains to

the Q1 of the fiscal year 2017-18, viz., April-June 2017 (Q1 FY 18).

The report gives an account of the public debt management and cash management operations

during the quarter, and attempts a rationale for major activities. The report also tries to provide

detailed information on various aspects of debt management.

While all attempts have been made to provide authentic and accurate information, it is possible

that some errors might have crept in inadvertently. Readers may inform us of such errors, as

indeed their valuable suggestions, at [email protected].

mailto:[email protected]

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Section 1 – Macroeconomic Developments

1.1 As per Central Statistics Organization (CSO) estimates, India’s real GDP growth in Q4 (Jan –

March) FY 17 (at constant price 2011-12) stood at 6.1 per cent, as against 7.9 per cent growth in

Q 4 of FY 16. Correspondingly, Gross Value Addition (GVA) growth stood at 5.6 per cent in Q4 of

FY 17 as against 8.7 per cent in Q4 of FY 16. Of the sectors, agriculture output grew by 5.2 per

cent, manufacturing grew by 5.3 per cent, mining increased by 6.4 per cent and construction

grew by (-) 3.7 per cent. The growth in GDP during 2016-17 (provisional estimate) is estimated to

be 7.1 per cent, which is lower than the growth rate of 8.0 per cent (revised on May 31, 2017) in

2015-16 (Chart 1).

1.2 Headline CPI retail inflation in June 2017 eased to record low of 1.54 per cent compared to

2.18 per cent in the May 2017, led by a decline in prices of food articles, fuel and housing.

Meanwhile, Core CPI declined to 3.85 per cent in June 2017 as compared to 4.25 per cent in May

2017, declining for the third straight month. Food inflation, which accounts for about 46 per cent

of the overall CPI basket, decelerated for the second straight month to 1.17 per cent in June

2017 compared to a decline of 0.22 per cent in May and a growth of 7.46 per cent in June 2016.

The fall was led mainly by declining prices of cereals, vegetables and pulses. Prices of vegetables,

especially tomato, potato and onions shot up as several parts of country witnessed a supply

slump as the crops were destroyed due to heavy monsoons. Costs of fuel dropped to a four-

month low of 4.54 per cent in June from 5.46 per cent in April. The housing component with a

weight of 10.07 per cent in the CPI basket slumped to 4.70 per cent in June, its lowest level since

Aug 2015. Average CPI inflation rate during Q 1 FY 18 was significantly lower at 2.2 per cent as

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compared with 3.6 per cent during Q4 of FY 17 and 5.7 per cent during Q 1 of FY 17. WPI

inflation (base year 2011-12) eased to its lowest level in eleven months as costs of food articles

and fuel declined. WPI slipped to 0.90 per cent in June compared to 2.17 per cent in May and -

0.09 per cent in the year ago period (Chart 2).

1.3 Industrial growth, as measured by index of industrial production (IIP) [base year 2011-12]

registered 1.7 per cent increase in May 2017, moderating from 2.8 per cent growth observed in

Apr 2017. As per sectoral classification, mining (weight of 14.4 per cent) saw a y-o-y moderation

by -0.9 per cent, manufacturing (weight of 77.6 per cent) grew by 1.2 per cent and electricity

(weight of 7.99 per cent) grew by 8.7 per cent in May 2017. On the cumulative basis, industrial

growth in April-May 2017 registered a growth of 2.3% as compared to 7.3% a year ago (Chart 3)

reflecting a broad-based loss of momentum in manufacturing. Excess inventories of coal and

near stagnant output of crude oil and refinery products combined led to slow down in mining

activity. For electricity generation, lack of demand seems to remain a binding constraint. In

terms of uses, output of consumer non-durables accelerated underlining the resilience of rural

demand. There was however contraction in consumer durables – indicative of still sluggish urban

demand – and in capital goods. CSO revises the base year of the macroeconomic indicators, as a

regular exercise, to capture structural changes in the economy and improve the quality and

representativeness of the indices. In this direction, the base year of the all-India Index of

Industrial Production (IIP) has also been revised from 2004-05 to 2011-12 to not only reflect the

changes in the industrial sector but to also align it with the base year of other macroeconomic

indicators like the gross domestic product (GDP), wholesale price index (WPI).

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1.4 India’s exports, in dollar terms, valued at USD 23.6 billion in June 2017 continue to exhibit

positive growth for the last ten months (y-o-y) at 4.4 per cent over June 2016 (valued at USD

22.6 billion). However, merchandise export growth weakened in May and June 2017 from the

April peak as the value of shipments across commodity groups either slowed or declined. During

June 2017, major commodity groups of exports that showed positive growth were Engineering

Goods (14.78 per cent), Petroleum Products (3.60 per cent), Organic & Inorganic Chemicals

(13.20 per cent), Rice (27.29 per cent) and Marine Products (24.27 per cent). Import growth

remained in double digits in June 2017, primarily due to surge in oil imports and stockpiling of

gold imports ahead of the implementation of the GST. Imports of coal, electronic goods, pearls

and precious stones, vegetable oils and machinery also accelerated. POL imports (valued at USD

8.1 billion) were 12.0 per cent higher in June 2017 as compared to June 2016 (USD 7.3 billion)

despite the global Brent prices ($/bbl) decreasing by 3.28 per cent in June 2017 vis-à-vis June

2016, as per World Bank commodity price data. As import growth continued to outpace export

growth, the trade deficit at US$ 40.1 billion in Q1 was more than double of its level a year ago

(Chart 4).

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1.5 Net Foreign Direct Investment doubled in April-May 2017 over its level a year ago,

flowing mainly into manufacturing, retail and wholesale trade and business services. Foreign

portfolio investors made net purchases of US$ 15.2 billion in domestic debt and equity markets

so far (up to July 31), remaining bullish on the outlook for the Indian economy. The level of

foreign exchange reserves was US$ 392.9 billion as on July 28, 2017, higher by US$ 23 billion

than that at end-March 2017. Rupee mostly exhibited an appreciating trend during the quarter

driven by positive macroeconomic factors such as low inflation, ample liquidity, etc. As

compared with previous quarter closing of INR at `64.84 per USD on March 31, 2017, INR traded

in range of `64.00-65.04 per USD during the quarter and closed at level of `64.74 per USD on

June 30, 2017. The average INR exchange rate was `64.46 per USD during the Q1 of FY 2018 as

compared with `67.00 per USD during Q4 quarter of FY 2017. (Chart 5).

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Section 2– Debt Management - Primary Market Operations

A. Government Finances 2.1 The fiscal deficit of the Central Government in budget estimates (BE) 2017-18 (FY 18) was

placed at ` 5,46,532 crore (3.2 per cent of GDP) as against ` 5,34,274 crore (3.5 per cent of

GDP) in the revised estimates (RE) for 2016-17. The deficit was funded from different sources

with ` 3,50,228 crore (net) budgeted to be raised from market sources. Gross market borrowing

for the year were budgeted at ` 5.80,000 crore. Calendar for issuance of G-secs for first half of

FY 18 and for T-Bills for first quarter of the FY 18 were issued on March 28, 2017. Auctions during

the quarter were conducted in terms of these calendars.

2.2 The fiscal outcome for first quarter (Q1) of the FY18 (April-June 2017) of Central

Government shows that gross fiscal deficit during Q1 touched Rs. 4.41 trillion or 80.8 per cent of

2017-18 BE as against 61.1 per cent in Q1 of 2016-17 BE. During Q1 of FY18, revenue receipts

were around 13 per cent of total revenue estimated for FY18 (BE), at the same level as that of Q1

of FY17. Total expenditure of the Government during Q1 was nearly Rs. 6.5 trillion or 30.31 per

cent of BE as compared with 25.9 per cent of BE in Q1 FY 16. Tax receipts showed marginal

decline while non-tax receipts were slightly higher at 7.61 per cent of total BE for the year, as

compared to 7.30 percent received in Q1 FY 17. Total receipts (from revenue and non-debt

capital) during the Q1 were over Rs. 1.99 trillion which is 13.15 per cent of the BE (Table 1).

Table 1: Fiscal Outcome during the April -June 2017-18 (Amount in ` crore)

Item 2017-18 BE April-June 2017-18

April-June 2017-18 (% of BE)

April-June 2016-17 (% of BE)

Revenue Receipts 1515771 199302 13.15 13.1

Tax Receipts 1227014 177337 14.45 14.9 Non-Tax Receipts 288757 21965 7.61 7.3 Other Non-debt Receipts 84432 9744 11.54 7.0 Total Expenditure 2146735 650731 30.31 25.9 Revenue Expenditure 1837505 582403 31.70 26.7 Capital Expenditure 309230 68328 22.10 19.8

Revenue Deficit 321734 383101 119.07 79.7 Primary Deficit 23454 308275 1314.38 527.5 Gross Fiscal Deficit 546532 441685 80.82 61.1 Financing Market Loans* 350228 222867 63.63 39.8 External Assistance 15789 5025 31.83 26.7 Securities against Small Savings 100157 19505 19.47 123.2 Others 80357 194288 241.78 232.4

*:- Includes borrowings through treasury bills. Source: Controller General of Accounts (CGA) website; cga.nic.in

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B. Issuance Details 2.3 This section discusses issuance details of market loans during the first quarter (Q1) of FY18.

Gross and net market borrowing requirements of the Government for FY17 were revised

lower to ` 5,82,000 crore and ` 4,06,708 crore, which were lesser by 0.52 per cent and 7.70 per

cent, respectively, than ` 5,85,000 crore and ` 4,40,625 crore in FY16. During Q1 FY18, the

Government issued dated securities worth ` 1,68,000 crore (29.0 per cent of BE), higher than `

1,65,000 crore (28.4 per cent of BE) in Q1 of FY 17 (Table 2). Net market borrowings during Q1

FY 18 at 31.01 per cent of BE were also higher than 26.9 per cent of BE in the corresponding

period of previous year.

Table 2: Issuance of Dated Securities (Amount in `crore)

Item 2017-18 BE

Q1 FY 18 BE

Q1 FY 17 Q1 FY 18 % of BE

Q1 FY 17 % of BE

Gross Amount 580000 168000 165000 29.0 28.4 Repayments 156774 36767 55614 23.5 31.7 Switching 75000 - 0 - - Net Issuance 423226 131233 109386 31.01 26.90

2.4 Auctions during Q1 of FY18 were held in accordance with the pre-announced calendar

(Table 3). During Q1 FY 18, eleven tranches of auction were held for issuances of GoI dated

securities worth ` 1,68,000 crore. One new security, namely 6.79% GS 2027 was issued during

the quarter on May 15, 2017 and remaining issuances were under the existing securities. The

amount issued under new security constituted ` 24,000 crore or 14.3 per cent of total issuances

in Q1, remaining being re-issues. There was devolvement on PDs amounting to ` 3,216 crore in

respect of G-sec 6.97% GS 2026 on Apr 17, 2017 during Q1 FY 17.

Table 3: Primary Issuance by Maturity Buckets, Q1 of 2017-18 (Amount in ` crore)

5-9 years 10-14 years 15-19 Years 20-30 Years Total

2015-16 94000 266000 112000 113000 585000

% of Total 16.1 45.5 19.1 19.3 100.0

2016-17 108000 303000 82000 89000 582000

% of Total 18.6 52.1 14.1 15.3 100.0

Q1 FY17 33000 88000 22000 22000 165000

% of Total 20.00 53.33 13.33 13.33 100.00

Q1 FY18 (Projected) 36000-48000 74000-86000 24000-36000 24000-36000 183000

% of Total 19.7-26.2 40.4-47.0 13.3-20.0 13.3-20.0 100

Q1 FY 18 (Actual) 34000 81000 23000 30000 168000

% of Total 20.24 48.21 13.69 17.86 100.00

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2.5 The gross amount raised through treasury bills (91, 182 and 364 day treasury bills) during Q1

of FY 17 amounted to ` 2,88,755 crore while total repayments amounted to ` 1,97,241 crore

resulting in net issuance of ` 91,514 crore in Q1 FY 18 as compared with net issuance of `

66,629 crore in Q1 of last year (Table 4). The higher net issuance of treasury bills during Q1 of

FY18 was required for cash management purposes. The details of issuance of bills during Q1 of

FY18 are given in Statement 2.

Table 4: Issuance of Treasury Bills*

(Amount in ` crore)

Item 2017-18 BE Q1 FY 18 Q1 FY 17 Q1 FY 18 % of BE

Q1 FY 17 % of BE

364 DTB

Gross Amount 148524 38974 38519 26.2 23.6

Repayment 148524 38519 37982 25.9 24.5

Net Issuance 0 455 537 - 6.6

182 DTB

Gross Amount 165912 54437 46025 32.8 28.6

Repayment 165912 51882 42236 31.3 26.9

Net Issuance 0 2554 3789 - 94.7

91 DTB

Gross Amount 668211 195345 195157 29.2 26.5

Repayment 666209 106840 132855 16.0 18.5

Net Issuance 2002 88505 62303 - 347.3

All T-Bills

Gross Amount 982647 288755 279701 29.4 26.4

Repayment 980645 197241 213072 20.1 20.7

Net Issuance 2002 91514 66629 - 221.6

*:- Including amount through non-competitive route.

2.6 The weighted average maturity of primary issuance stood lower at 14.92 during the Q1 FY18

as compared to 15.01 during Q4 FY17. The weighted average yield (cut-off) of issuance during Q1

FY18 stood at 7.01 per cent as against 6.75 per cent in Q4 FY17 reflecting hardening of G-sec

yields during the quarter.

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Section 3 – Cash Management

3.1 Government’s cash account is maintained with RBI. The cash-flow mismatches of the

Government are largely managed through issuance of Treasury Bills, access to the Ways and

Means Advances (WMA) facility from the Reserve Bank and issuance of Cash Management Bills

when in deficit and through auctions of its cash balance in market (through RBI) and buybacks of

securities from market, when in surplus. The limits for Ways and Means Advances (WMA) for the

first quarter of the Financial Year 2017-18 (April 2017-June 2017) was fixed at ` 60,000 crore.

3.2 Liquidity conditions in the economy remained comfortable and continue to be in surplus

mode during the quarter post the de-monetisation (Chart 6). The liquidity surplus (-), (net

mobilisation by RBI under Liquidity Adjustment Facility (LAF)) including MSF during the quarter,

was at an average of ` 4,38,328 crore in April 2017, decreasing to an average surplus of `

4,32,903 crore in May 2017 and further decreasing in June 2017 to an average surplus of `

4,05,011 crore, reflecting the decreasing trend. The average net mobilisation under LAF during

Q1 of FY 17-18 was at ` 4,24,768 crore as against surplus of ` 5,89,219 crore in the previous

quarter (Q4 of FY 16-17). On policy front, in the first Bi-Monthly monetary Policy statement on

April 6, 2017, Monetary Policy Committee (MPC) kept the Repo rate unchanged at 6.25 per cent,

however narrowed the LAF Corridor to 25 bps, increasing the Reverse Repo rate to 6.0 per cent.

In the second Bi-monthly Monetary policy statement on June 7, 2012, MPC kept the Repo rate

unchanged at 6.25%. However, it lowered the SLR requirement from 20.5 % to 20.0 % effective

from June 24, 2017.

3.3 Due to front loading of expenditure by the Ministries and heavy repayment of G-secs falling during

the quarter, combined with low cash inflows generally seen during the first half of the year, the cash

position of the Government during Q1 of FY17 was somewhat stressed and it took recourse to WMA from

RBI to tide over this temporary phase. Overdraft was also availed briefly during the quarter. Cash

Management Bills of varying durations amounting to ` 1,30,000 crore were issued during the quarter to

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augment the cash position of the Govt with CMBs of ` 40,000 crore redeemed during the quarter

itself. CMBs have generic character of Treasury Bills. The net amount of Treasury Bills issued through

competitive route during the quarter was ` 26,012 crore. The net amount of Treasury Bills issued through

non-competitive route during the quarter was ` 65,501.99 crore. Overall, the net amount mobilised

through Treasury Bills (under competitive and non-competitive routes) during Q1 of FY17 increased

to ` 91,513.99 crore. Details of treasury bills issued and matured in Q1 of FY18 are given in Table 5.

Table 5: Repayments and Issuance of Treasury Bills in April -June 2017

(Amount in ` crore)

Date of Issue Repayments Issued Amount Variation in Issued amount over Repayments 91 DTB 182 DTB 364 DTB 91 DTB 182 DTB 364 DTB

6-Apr-17 5998 6000 0 8000 6000 0 2002

12-Apr-17 0 0 6000 0 0 0 - 6000

13-Apr-17 5998 0 0 8000 0 6000 8002

20-Apr-17 5998 6000 0 8000 6000 0 2002

27-Apr-17 0 0 6000 8000 0 6000 8000

28-Apr-17 5998 6000 0 0 0 0 -11998

4-May-17 5999 0 0 8000 6000 0 8001

11-May-17 6000 6000 6000 8000 0 6000 -4000

18-May-17 6000 0 0 8000 6000 0 8000

25-May-17 6000 6000 6000 8000 0 6000 -4000

1-Jun-17 6000 0 0 8000 6000 0 8000

8-Jun-17 5998 6000 6000 8000 0 6000 -3998

15-Jun-17 6000 0 0 8000 6000 0 8000

22-Jun-17 5999 6000 6000 8000 6000 0 -3999

29-Jun-17 6000 0 0 8000 6000 0 8000

Total Under Competitive Route

Q1 77,988 42,000 36,000 1,04,000 42,000 36,000 26,012

Total Under Non-Competitive Route

Q1 28,852.06 9,882.29 2,519.15 91,344.80 12,436.69 2,974.00 65,501.99

3.4 The calendar for issuance of Treasury Bills during July - September 2017 was announced on

June 30, 2017, with gross borrowings at ` 2,14,000 crore (Statement 5).

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Section 4 – Trends in Outstanding Public Debt

4.1 The total Public Debt (excluding liabilities under the ‘Public Account’) of the Government

provisionally increased to ` 63,35,875 crore at end-June 2017 from ` 61,13,109 crore at end-

March 2017 (Table 6). This represented a quarter-on-quarter (QoQ) increase of 3.6 per cent

(provisional) in Q1 FY 18 as compared to a decrease of 1.15 per cent in the previous quarter (Q4

of FY 17). Internal debt constituted 93.0 per cent of Public Debt at the end of quarter, as against

92.7 per cent in the previous quarter. Marketable securities (consisting of Rupee denominated

dated securities and Treasury Bills) accounted for 83.2 per cent of total Public Debt at end-June

2017. The outstanding internal debt of the Government at ` 58,92,637 crore constituted 37.8

per cent of GDP at end-June 2017 as compared with 37.3 per cent at end-March 2017.

Table 6: Composition of Public Debt

Item At end-June 2017#

At end-March 2017

At end-June 2017#

At end-March 2017

(` crore) (% of Total)

1 2 3 4 5

Public Debt (1 + 2) 63,35,875 61,13,109 100.0 100.0

1. Internal Debt 58,92,637 56,69,872 93.0 92.7

Marketable 52,71,852 50,49,087 83.2 82.6

(a) Treasury Bills 4,26,316 3,34,802 6.7 5.5

(i) Cash Management Bills - - - -

(ii) 91-days Treasury Bills 1,95,345 1,06,840 3.1 1.7

(iii) 182-days Treasury Bills 87,991 85,436 1.4 1.4

(iv) 364-days Treasury Bills 1,42,981 1,42,526 2.3 2.3

(b) Dated Securities 48,45,535 47,14,285 76.5 77.1

Non-marketable* 6,20,786 6,20,786 9.8 10.2

(i) 14-days Treasury Bills* 1,56,570 1,56,570 2.5 2.6

(ii) Securities Issued to NSSF* 3,09,011 3,09,011 4.9 5.1

(iii) Compensation and other bonds*

46,465 46,465 0.7 0.8

(iv) Securities issued to International Financial Institutions*

1,08,740 1,08,740 1.7 1.8

(v) Ways and Means Advances* - - - -

2. External Debt 4,43,237 4,43,237 7.0 7.3

(i) Multilateral* 2,88,260 2,88,260 4.5 4.7

(ii) Bilateral* 1,19,284 1,19,284 1.9 2.0

(iii) IMF* 35,129 35,129 0.6 0.6

(iv) Rupee debt* 564 564 0.0 0.0

#: Data are provisional.

*These data are not available for end-June, 2017. So they are carried over from previous quarter.

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Maturity Pattern for Outstanding Government Debt Stock

4.2 The weighted average yield of primary issuance during Q1 of 2017-18 increased to 7.01 per

cent from 6.75 per cent in the previous quarter, indicating rise in yields in the market. The

weighted average maturity of outstanding stock of dated securities as at end-June 2017

increased marginally to 10.67 years from 10.65 years as at end March 2017. However, over the

same period, the weighted average coupon of outstanding stock decreased to 7.95 per cent from

7.99 per cent (Table 7).

Table 7: Maturity and Yield of Central Government's Market Loans

Year Issues during the year Outstanding Stock*

Weighted Average Yield (%)

Weighted Average

Maturity (yrs)

Weighted Average

Coupon (%)

Weighted Average

Maturity (yrs)

1 2 3 4 5

2010-11 7.92 11.62 7.81 9.64

2011-12 8.52 12.66 7.88 9.6

2012-13 8.36 13.5 7.97 9.66

2013-14 8.48 14.28 7.98 10.00

2014-15 8.51 14.66 8.09 10.23

2015-16 7.89 16.07 8.08 10.50

2016-17 Q1 7.64 14.37 8.07 10.53

2016-17 Q2 7.24 14.26 8.05 10.54

2016-17 Q3 6.78 15.59 8.02 10.54

2016-17 Q4 6.75 15.01 7.99 10.65

2016-17 7.16 14.76 7.99 10.65

2017-18 Q1 7.01 14.92 7.95 10.67

*As at end of period.

4.3 The proportion of debt (dated securities) maturing in less than one year increased to 5.3 per

cent at end-June 2017 from 3.3 per cent a quarter ago. However, proportion of debt maturing

within 1-5 years was marginally lower at 21.3 per cent as against 21.7 per cent at end-March

2017. Accordingly, debt maturing in next five years increased to 26.6 per cent at the end of Q1

of FY 18 from 25.0 per cent of outstanding stock at the end of previous quarter. However, the

proportion of outstanding debt maturing in less than 10 years was lower at 57.3 per cent as

against 58.3 per cent a quarter ago, with corresponding decrease in share in proportion of debt

maturing in more than 10 years. The change in composition of debt in terms of various maturity

buckets reflects the maturity structure of securities issued during Q1 of FY18 as well as the

maturity dynamics of outstanding securities. Overall, 26.6 per cent of outstanding stock has a

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residual maturity of up to 5 years at end-June 2017, which implies that over the next five years,

on an average, 5.3 per cent of outstanding stock needs to be repaid every year (Table 8). Thus,

the rollover risk in the debt portfolio continues to be low. A switch operation of GoI securities

was conducted on June 12, 2017 with a scheduled commercial bank wherein securities worth

face value ₹ 17,016 crore maturing in first-half of 2017-18 were switched to longer tenor

securities maturing in 2024-25 and 2029-30 at FIMMDA/ Market prices. The implementation of

budgeted buy back/ switches in coming period is expected to reduce roll over risk further.

Table 8: Maturity Profile of GoI Outstanding Dated Securities

(Amount in ` crore)

Maturity Buckets End-Mar 2017 End-Jun 2017

Less than 1 Year 1,56,606.8 2,54,538.96

(3.3) (5.3)

1-5 Years 10,23,748.5 10,32,032.5

(21.7) (21.3)

5-10 Years 15,69,377.9 14,89,612.9

(33.3) (30.7)

10-20 Years 13,81,972.9 14,56,878.9

(29.3) (30.1)

20 Years and above 5,82,472.3 6,12,472.3

(12.4) (12.6)

Total 47,14,178.32 48,45,535.50

Note: 1. Figures in parentheses represent per cent to total.

Holding Pattern

4.4 The holding pattern of Government securities is available with a lag of a quarter; the latest

data are available for end-March 2017 (Table 9 and Chart 7). Banks (including banks that are

primary dealers) continue to dominate as the major investor category, with their share in holding

of Government securities slightly decreasing to 40.5 per cent at end-Mar 2017 from 40.9 per

cent as at end-Dec 2016. Among the long-term investors, the share of insurance companies and

provident funds increased marginally during the quarter to 22.9 per cent and 6.3 per,

respectively from 22.5 per cent and 6.2 per cent, respectively at end-Dec 2016. The share of FPIs

also increased to 3.5 per cent at end-Mar 2017 from 3.1 per cent a quarter ago. Share of Mutual

Funds decreased to 1.49 per cent at end-Mar 2017 from 1.96 per cent a quarter ago. Proportion

of securities held by the Reserve Bank at end-March 2017 increased marginally to 14.7 per cent

(from 14.6 per cent a quarter ago) reflecting the outcome of liquidity management operations.

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Table 9: Ownership Pattern of Government of India Dated Securities

(Per cent of Outstanding Securities)

Category 2015 2016 2017

Dec Mar. Jun. Sep. Dec. Mar.

1. Commercial Banks 43.6 41.8 39.9 40.0 40.9 40.5

2. Non-Bank PDs 0.4 0.3 0.5 0.1 0.3 0.2

3. Insurance Companies

21.9 22.2 22.6 22.7 22.5 22.9

4. Mutual Funds 2.5 2.1 2.1 2.1 1.96 1.49

5. Co-operative Banks 2.7 2.8 2.7 2.5 2.6 2.7

6. Financial Institutions 0.7 0.7 0.7 0.8 0.9 0.8

7. Corporates 0.9 1.3 1.3 1.1 1.1 1.1

8. FPIs 3.7 3.7 3.6 3.8 3.1 3.5

9. Provident Funds 7.1 6.0 5.9 6.3 6.2 6.3

10. RBI 12.1 13.5 14.9 14.8 14.6 14.7

11. Others 4.5 5.7 5.8 5.8 5.8 6.0

Total 100.0 100.0 100.0 100.0 100.0 100.0

Source: RBI Bulletin, Volume LXXI No 6, June 2017.

15

Table 9: Ownership Pattern of Government of India Dated Securities

(Per cent of Outstanding Securities)

Category 2015 2016

Sep. Dec. Mar. Jun. Sep. Dec.

1. Commercial Banks 43.0 43.6 41.8 39.9 40.0 40.9

2. Non-Bank PDs 0.5 0.4 0.3 0.5 0.1 0.3

3. Insurance Companies 22.1 21.9 22.2 22.6 22.68 22.55

4. Mutual Funds 2.7 2.5 2.1 2.1 2.13 1.96

5. Co-operative Banks 2.6 2.7 2.8 2.7 2.5 2.6

6. Financial Institutions 0.6 0.7 0.7 0.7 0.8 0.9

7. Corporates 0.8 0.9 1.3 1.3 1.1 1.1

8. FPIs 3.6 3.7 3.7 3.6 3.8 3.1

9. Provident Funds 7.2 7.1 6.0 5.9 6.3 6.2

10. RBI 12.1 12.1 13.5 14.9 14.8 14.6

11. Others 4.8 4.5 5.7 5.8 5.8 5.8

Total 100.0 100.0 100.0 100.0 100.0 100.0

Source: RBI Bulletin, Volume LXXI No 3, March 2017.

16

Section 5 – Secondary Market

A. Government security yields

5.1 G-Sec yields witnessed a volatile trend during the quarter but yields softened at the end of

quarter. Chart 8 depicts the movement in Government bond yields (10-year benchmark rates)

during the Apr-June 2017 quarter (Q1 FY 17-18). Yields hardened during Apr 2017 due to factors

like cautious moods ahead of 1st Bi-monthly monetary policy of RBI for 2017-18 which

maintained a hawkish stance wherein RBI decided to maintain the status quo on its key policy

rates against some expectations of a rate cut, RBI narrowed the key policy rate corridor around

the Repo rate to ±25bps [± 50bps earlier] and accordingly raising the Reverse Repo rate to 6.00%

from earlier rate of 5.75%. Expectation of issuance of a new 10 year benchmark (as the current

paper neared the level generally not issued beyond) led the traders to trim their holdings to

make room for new paper added to hardening wave to some extent. Incidences of devolvement

of G-Secs on PDs, issuance of T-Bills of near 1 year term under MSS, wave of debt waivers by few

States which most likely will lead to higher State borrowing, OMO sales by RBI, cut in SLR from

20.50% to 20% lowering the bond holding requirement for banks, geo-political issues etc. also

contributed to the hardening of the yields.

However, yield showed a falling trend subsequently from May 2017 onwards due to

announcement of a buoyant monsoon, sharp fall in both WPI (Apr 3.85%, 2.17% in May and

0.90% in June) and CPI (2.99%, 2.18% and 1.54% for Apr, May and June respectively)

strengthening hopes of rate cut by RBI in near future, ample liquidity, dovish stance by RBI in

June policy review, increase in FPI limits by RBI, reduction in inflation projections by RBI,

Ten year benchmark yield closed at 6.51% on June 30, 2017 as against 6.66% on March 31, 2017

after trading between 6.43% and 6.99% during the quarter.

17

5.2 G-Sec yields at the end of June 2017 were broadly lower across the yield curve compared

to end-March 2017 mainly due to the reasons detailed in para 5.1 above. The 1 yr-10 yr spread

fell to 18 bps at the end of March 2017 from 74 bps at the end of March 2017 partly due to new

benchmark while 10yr-30yr spread widened to 56 bps from 32 bps over the same period.

Overall, 1yr-30yr spread at end of Q1 of FY17-18 narrowed to 74 bps compared to 106 bps at

the end of the Q4 (Chart 9).

5.3 The surplus liquidity in the system, which was hovering over 4 lakh crore in March

quarter fell to about 3.00 lakh crore during Apr-June 2017. Additionally, issuance of T-Bill by RBI

under MSS added pressure in the market. As the G-Secs yields softened, entities like Mutual

Funds and NBFCs which were investing heavily in T-Bills in March quarters shifted their strategy

to buying duration (dated securities) and consequently demand for T-Bills fell leading to rise in

their yield. The 91, 182 and 364 day yields hardened by 51, 44 and 55 bps respectively. The

spread between 1 month yield and 12 months yield, however, fell to 10 bps on June 30, 2017

compared to 72 bps on March 31, 2017. The spread between 1 month yield and 3 months yield

also fell to 3 bps in June 2017 compared to a rise of 39 bps in March 2017. The spread between

3 month and 6 month yields also fell to 10 bps on June 30, 2017 from 10 bps on March 31, 2017.

18

B. Trading Pattern for domestic securities

5.4 The total outright volume of G-Secs traded during Q1 of FY17-18 was ` 31.12 lakh crore, an

increase of 2.65% compared to volume of ` 30.32 lakh crore during Q4 of previous FY (Table 10).

The G-Secs trading saw the increase of 3.57% while T-Bills and SDLs trading activity fell by 2.01%

and 3.55% respectively during the quarter. The annualised outright turnover ratio1 for Central

Government dated securities (G-Secs) for Q1 of FY17-18 improved to 4.48 from 4.35 during Q4

of FY16-17. The annualised total turnover ratio2 including the repo transactions, for Q1 of FY 17-

18, however, fell to 11.83 from 12.17 during Q4 of FY16-17.

Table 10: Transactions in Government Securities (volume in ` Crore) Outright Repo

Period G-Sec T-Bills SDL Total G-Sec T-Bills SDL Total

Jul-Sep 13 14,23,720 2,62,383 36,194 17,22,297 8,25,847 10,21,290 5,148 18,52,285

Oct-Dec 13 13,12,755 2,10,203 33,062 15,56,020 7,23,963 9,78,151 5,018 17,07,132

Jan-Mar 14 15,99,764 1,99,696 41,768 18,41,228 6,84,264 9,89,645 14,168 16,88,077

Apr-Jun 14 23,67,773 2,28,296 49,700 26,45,769 9,50,413 10,13,226 6,726 19,70,365

July-Sept 14 18,06,274 2,01,536 24,824 20,32,635 10,12,130 9,24,362 26,401 19,62,893

Oct-Dec 14 26,90,532 2,04,131 43,601 29,38,264 11,83,003 5,80,690 60,785 18,24,478

Jan-Mar 15 22,85,029 1,89,507 64,959 25,39,494 13,26,350 7,40,729 50,431 21,17,510

Apr-Jun 15 22,80,746 2,25,239 56,618 25,62,604 12,67,888 7,73,487 10,096 20,51,471

July-Sept 15 21,54,202 2,26,051 77,147 24,57,401 14,56,168 5,33,733 41,476 20,31,377

Oct-Dec 15 19,31,991 2,15,039 87,086 22,34,116 16,22,568 4,95,476 45,462 21,63,506

Jan-Mar 16 21,90,732 1,88,060 95,627 24,74,420 18,84,073 4,45,508 45,731 23,75,312

Apr-June 16 28,27,815 2,35,855 1,13,275 31,76,946 20,64,067 4,35,971 1,18,263 26,18,301

July-Sept 16 52,05,354 2,76,679 1,87,322 56,69,355 26,81,221 3,27,322 1,80,494 31,89,037

Oct-Dec 16 45,92,866 2,60,525 1,42,809 49,96,200 24,44,862 3,78,260 1,34,363 29,57,485

Jan-Mar 17 25,72,437 3,00,402 1,58,807 30,31,646 23,09,653 6,61,235 99,290 30,70,178

Apr-June 17 26,64,380 2,94,369 1,53,174 31,11,923 21,86,206 6,37,634 1,96,874 30,20,714

5.5 Central Government dated securities continued to account for a dominant portion of

total trading volumes (Chart 11a and 11b). However, their share increased during the quarter to

85.62% of total outright volumes as compared to 84.85% in Q4 of FY 16-17. In Repo market also,

Central Government securities accounted for majority of transactions but their share fell to

72.37% of the total repo volumes during Q1 of FY17-18 as compared to 75.23% in Q4 of FY16-17.

1 Annualised Outright Turnover Ratio = 4*[Quarterly Outright Volume *2/(Average of outstanding stock)]

2 Annualised Total Turnover Ratio = 4* [(Quarterly Outright Volume *2 + Quarterly Repo Volume * 4) / (Average of

outstanding stock)]

19

5.6 The top 10 traded securities accounted for 66.55% of the total outright transaction volume

during the Q1 compared to 71.17% during Q4 of FY16-17, reflecting that a large number of

outstanding securities are traded now compared to a few earlier, thus broadening the market.

However, the share of top three traded securities increased to 58.92% during the quarter from

48.09% during Q4 of FY16-17 (Table 11).

Table 11 - Top 10 Traded Securities (in ` Crore)

Security Jan – March 17 Security April – June 17

6.79% GS 2029 7,26,796 6.97 % G.S. 2026 6,67,408

6.97% GS 2026 4,63,817 7.59 % G.S. 2026 6,36,179

6.79% GS 2027 3,05,910 7.61 % G.S. 2030 4,82,754

7.59% GS 2026 1,96,222 7.68 % G.S. 2023 1,10,568

7.61% GS 2030 1,50,185 8.27 % G.S. 2020 64,285

7.72% GS 2025 63,182 6.79 % G.S. 2029 62,528

7.68% GS 2023 54,743 7.59 % G.S. 2029 44,650

7.35% GS 2024 47,278 6.35 % G.S. 2020 31,958

8.20% GS 2025 31,538 7.80 % G.S. 2021 30,700

8.60% GS 2028 31,397 7.72 % G.S. 2025 26,605

TOTAL 20,71,068 Total 21,57,633

20

5.7 The trend in outright trading volumes in Government securities under different maturity

buckets is given in Table 12.

Table 12: Maturity –wise outright trading volumes in G-Sec (in ` Crore)

5.8 The maturity distribution of Government securities transactions in the secondary market

is represented in Chart 12a and 12b for Q1 of 2017-18 and Q4 of 2016-17 respectively. Trading

increased in short (3-7 years) and longer end of bond market (> 10 year) during the quarter vis-à-

vis previous quarter. Share of ‘10 years and above’ maturity bucket saw a significant rise in share

of trading volumes during Q1 of FY 17-18 (40.07% vs. 27.93% in Q4 of FY16-17). The Share of ‘7-

10 years’ maturity range, however, fell to 42.81%, from 54.67% in previous quarter. The below 3

years maturity bracket continued to have lowest share of trading volume 1.36% in Q1 of FY 18

vs. 3.57% in Q4 of previous year.

Table 12 a: Maturity wise composition of G-Secs trading

Maturity/Quarter Apr-June17(` Cr) Apr-June 17 (%) Jan-Mar17 (`

Cr) Jan - Mar 17 (%)

Less than 3 Years 36,298 1.36% 91,827 3.57%

3-7 Years 4,19,757 15.75% 3,55,658 13.83%

7-10 Years 11,40,696 42.81% 14,06,383 54.67%

> 10 years 10,67,629 40.07% 7,18,569 27.93%

Total 26,64,380 100.00% 25,72,437 100.00%

Maturity/ Quarter Apr-June 2017 Jan-Mar 2017 Oct-Dec 16 July -Sept 16 Apr-Jun 16 July-Sep 15 2015-16 2014-15

Less than 3 Years 36,298 91,827 84,902 76,389 109,611 41,227 224,817 106,086

3-7 Years 4,19,757 3,55,658 7,63,849 896,473 771,652 259,519 1,568,708 1,182,377

7-10 Years 11,40,696 14,06,383 19,81,604 1908,203 903,690 1,435,526 4,272,320 4,821,218

above 10 Years 10,67,629 7,18,569 17,62,511 2,324,288 1,042,860 417,930 2,491,828 3,039,926

Total 26,64,380 25,72,437 45,92,866 5,205,353 2,827,813 2,154,202 8,557,673 9,149,607

21

5.9 PSBs regained the top position from foreign banks to be the dominant trading category during

the Apr-June 2017 quarter with a 26.5% share in total outright trading activities. (Chart 13). Foreign

banks vouched for the 2nd highest share at 22.3%. Mutual Funds were the largest net buyer (` 86,410

crore) in secondary market during the quarter, followed by `Others' category (` 32,113 crore). PDs were

the largest net sellers category in secondary market (` 83,108 crore) during the quarter, followed by

PSBs (` 67,031 crore).

5.10 Quarterly share of various categories/participants in the secondary market trading activity (buy +

sell) for government securities is shown in Table 13.

Table 13: Share of various categories of participants in G-Secs trading

Apr-June 17 Jan-March 17 Oct-Dec 16 July-Sept 16 Apr – Jun 16

Category Buy Sell Buy Sell Buy Sell Buy Sell Buy Sell

Co-op Banks 4.16% 3.89% 3.84% 3.48% 4.98% 4.72% 4.97% 4.89% 3.54% 3.41%

FIs 0.44% 0.22% 0.44% 0.36% 0.45% 0.36% 0.35% 0.31% 0.26% 0.03%

Foreign Banks 22.66% 21.96% 28.67% 28.59% 24.90% 26.81% 24.74% 25.04% 27.47% 28.56%

Ins. Cos 2.08% 1.68% 2.08% 1.66% 1.19% 1.14% 1.07% 0.95% 1.46% 1.31%

MFs 10.55% 7.78% 12.19% 10.64% 9.64% 9.47% 8.24% 7.69% 8.4% 7.08%

Others 2.23% 1.20% 1.82% 0.90% 1.19% 0.65% 16.92% 18.11% 13.56% 15.64%

Primary Dealers 15.33% 18.00% 12.19% 13.56% 14.65% 16.22% 13.32% 13.75% 16.65% 16.48%

Pvt Banks 17.09% 17.66% 13.17% 14.46% 13.51% 13.27% 29.23% 28.59% 27.11% 26.54%

PSBs 25.46% 27.61% 25.60% 26.35% 29.49% 27.36% 1.15% 0.69% 1.55% 0.94%

Total 100% 100% 100% 100.00% 100% 100% 100% 100% 100% 100%

i

Statement 1: Issuance of Dated securities During Q1 FY 17-18

(Amount in `Crore)

Name of Stock Date of Auction

Date of Issue

Amount Raised

Devolvement on

PDs

Cut off price

Cut off yield (%)

Date of Maturity

Residual Maturity (Years)

6.51% FRB 2024 $ M

M

07-Apr-17 10-Apr-17 3000.0 0.00 96.3 6.757 07-Nov-24 7.58 6.79% GS 2029 $ M 07-Apr-17 10-Apr-17 7000.0 0.00 96.2 7.246 26-Dec-29 12.71 6.57% GS 2033 $ M 07-Apr-17 10-Apr-17 2000.0 0.00 92.1 7.400 05-Dec-33 16.65 6.62% GS 2051 $ M 07-Apr-17 10-Apr-17 3000.0 0.00 90.2 7.412 28-Nov-51 34.63 6.84% GS 2022 $ M 13-Apr-17 17-Apr-17 4000.0 0.00 100.3 6.779 19-Dec-22 5.67 6.97% GS 2026 $ M 13-Apr-17 17-Apr-17 8000.0 3216.00 101.1 6.808 06-Sep-26 9.39 7.73% GS 2034 $ M 13-Apr-17 17-Apr-17 3000.0 0.00 103.2 7.401 19-Dec-34 17.67 7.06% GS 2046 $ M 13-Apr-17 17-Apr-17 3000.0 0.00 96.0 7.396 10-Oct-46 29.48 6.51% FRB 2024 $ M

MMM M

21-Apr-17 24-Apr-17 3000.0 0.00 96.5 6.784 07-Nov-24 7.54 6.79% GS 2029 $ M 21-Apr-17 24-Apr-17 7000.0 0.00 97.0 7.150 26-Dec-29 12.67 6.57% GS 2033 $ M 21-Apr-17 24-Apr-17 2000.0 0.00 92.0 7.410 05-Dec-33 16.61 6.62% GS 2051 $ M 21-Apr-17 24-Apr-17 3000.0 0.00 89.7 7.450 28-Nov-51 34.59 6.84% GS 2022 $ M 28-Apr-17 02-May-17 3000.0 0.00 99.7 6.914 19-Dec-22 5.63 6.97% GS 2026 $ M 28-Apr-17 02-May-17 7000.0 0.00 100.1 6.949 06-Sep-26 9.34 7.73% GS 2034 $ M 28-Apr-17 02-May-17 2000.0 0.00 102.7 7.449 19-Dec-34 17.63 7.06% GS 2046 $ M 28-Apr-17 02-May-17 3000.0 0.00 95.3 7.459 10-Oct-46 29.44 6.84% GS 2022 $ M 05-May-17 08-May-17 3000.0 0.00 99.7 6.903 19-Dec-22 5.61 6.79% GS 2029 $ M 05-May-17 08-May-17 7000.0 0.00 97.3 7.111 26-Dec-29 12.63 6.57% GS 2033 $ M 05-May-17 08-May-17 2000.0 0.00 91.9 7.427 05-Dec-33 16.58 7.72% GS 2055 $ M 05-May-17 08-May-17 3000.0 0.00 102.4 7.530 26-Oct-55 38.47 6.30% FRB 2024 $ M 12-May-17 15-May-17 3000.0 0.00 96.6 6.831 07-Nov-24 7.48 6.79% GS 2027 # M 12-May-17 15-May-17 8000.0 0.00 100.0 6.790 15-May-27 10.00 7.73% GS 2034 $ M 12-May-17 15-May-17 2000.0 0.00 102.7 7.450 19-Dec-34 17.59 7.06% GS 2046 $ M 12-May-17 15-May-17 2000.0 0.00 95.0 7.480 10-Oct-46 29.40 6.84% GS 2022 $ M 19-May-17 22-May-17 3000.0 0.00 100.0 6.847 19-Dec-22 5.58 6.79% GS 2029 $ M 19-May-17 22-May-17 7000.0 0.00 99.3 6.878 26-Dec-29 12.59 6.57% GS 2033 $ M 19-May-17 22-May-17 2000.0 0.00 92.7 7.342 05-Dec-33 16.54 6.62% GS 2051 $ M 19-May-17 22-May-17 3000.0 0.00 89.2 7.500 28-Nov-51 34.52 6.30% FRB 2024 $ M 26-May-17 29-May-17 3000.0 0.00 97.3 6.852 07-Nov-24 7.44 6.79% GS 2027 $ M 26-May-17 29-May-17 8000.0 0.00 100.9 6.660 15-May-27 9.96 7.73% GS 2034 $ M 26-May-17 29-May-17 2000.0 0.00 104.1 7.310 19-Dec-34 17.56 7.06% GS 2046 $ M 26-May-17 29-May-17 2000.0 0.00 96.0 7.395 10-Oct-46 29.36 6.84% GS 2022 $ M 02-Jun-17 05-Jun-17 3000.0 0.00 100.4 6.760 19-Dec-22 5.54 6.79% GS 2029 $ M 02-Jun-17 05-Jun-17 7000.0 0.00 99.9 6.807 26-Dec-29 12.56 6.57% GS 2033 $ M 02-Jun-17 05-Jun-17 2000.0 0.00 94.7 7.127 05-Dec-33 16.50 6.62% GS 2051 $ M 02-Jun-17 05-Jun-17 3000.0 0.00 90.4 7.397 28-Nov-51 34.48 6.30% FRB 2024 $ M 09-Jun-17 12-Jun-17 3000.0 0.00 97.6 6.816 07-Nov-24 7.40 6.79% GS 2027 $ M 09-Jun-17 12-Jun-17 8000.0 0.00 101.9 6.525 15-May-27 9.93 7.73% GS 2034 $ M 09-Jun-17 12-Jun-17 2000.0 0.00 107.2 7.013 19-Dec-34 17.52 7.06% GS 2046 $ M 09-Jun-17 12-Jun-17 2000.0 0.00 99.4 7.109 10-Oct-46 29.33 6.84% GS 2022 $ M 23-Jun-17 27-Jun-17 3000.0 0.00 101.2 6.566 19-Dec-22 5.48 6.79% GS 2029 $ M 23-Jun-17 27-Jun-17 7000.0 0.00 100.4 6.737 26-Dec-29 12.50 6.57% GS 2033 $ M 23-Jun-17 27-Jun-17 2000.0 0.00 97.3 6.850 05-Dec-33 16.44 6.62% GS 2051 $ M 23-Jun-17 27-Jun-17 3000.0 0.00 93.8 7.100 28-Nov-51 34.42 Gross Nominal Amount Raised 168000.0

Weighted Average Yield 7.01

Weighted Average Maturity 14.92

$ - Reissues/Price based auctions # New Issue/Yield Based Auction M-Multiple Price based auction

ii

Statement 2:Treasury Bills Issued During Q1 FY 17-18

(Amount in `crore)

Name of Security Date of Auction Date of

Issue Competitive

amount raised

Non-Competitive

amount raised

Gross Nominal

amount raised

Cut off Yield (%)

364 DTB 12-Apr-17 13-Apr-17 6000.0 0.0 6000.0 6.22

364 DTB 26-Apr-17 27-Apr-17 6000.0 0.0 6000.0 6.45

364 DTB 9-May-17 11-May-17 6000.0 0.0 6000.0 6.48

364 DTB 24-May-17 25-May-17 6000.0 0.0 6000.0 6.47

364 DTB 7-Jun-17 8-Jun-17 6000.0 0.0 6000.0 6.43

364 DTB 21-Jun-17 22-Jun-17 6000.0 2974.0 8974.0 6.38

182 DTB 5-Apr-17 6-Apr-17 6000.0 2725.7 8725.7 6.18

182 DTB 19-Apr-17 20-Apr-17 6000.0 2.0 6002.0 6.31

182 DTB 3-May-17 4-May-17 6000.0 1251.5 7251.5 6.39

182 DTB 17-May-17 18-May-17 6000.0 45.0 6045.0 6.44

182 DTB 31-May-17 1-Jun-17 6000.0 3000.0 9000.0 6.39

182 DTB 14-Jun-17 15-Jun-17 6000.0 3910.0 9910.0 6.33

182 DTB 28-Jun-17 29-Jun-17 6000.0 1502.5 7502.5 6.33

91 DTB 5-Apr-17 6-Apr-17 8000.0 3960.9 11960.9 5.86

91 DTB 12-Apr-17 13-Apr-17 8000.0 12540.0 20540.0 5.98

91 DTB 19-Apr-17 20-Apr-17 8000.0 9552.0 17552.0 6.11

91 DTB 26-Apr-17 27-Apr-17 8000.0 7550.0 15550.0 6.19

91 DTB 3-May-17 4-May-17 8000.0 17162.4 25162.4 6.23

91 DTB 9-May-17 11-May-17 8000.0 12300.0 20300.0 6.27

91 DTB 17-May-17 18-May-17 8000.0 3560.0 11560.0 6.27

91 DTB 24-May-17 25-May-17 8000.0 10160.3 18160.3 6.27

91 DTB 31-May-17 1-Jun-17 8000.0 2004.5 10004.5 6.31

91 DTB 7-Jun-17 8-Jun-17 8000.0 6770.8 14770.8 6.27

91 DTB 14-Jun-17 15-Jun-17 8000.0 3140.0 11140.0 6.27

91 DTB 21-Jun-17 22-Jun-17 8000.0 888.1 8888.1 6.27

91 DTB 28-Jun-17 29-Jun-17 8000.0 1755.9 9755.9 6.27

1,82,000.0 1,06,755.5 2,88,755.5

iii

Statement 3: List of Dated Securities Outstanding at end-June 2017

Nomenclature Date of maturity Outstanding Stock (` Crore) of which: MSS

FRB 2017 02-Jul-17 3,000.000 - 8.07% GS 2017 JUL 03-Jul-17 27240.445 - 7.99% GS 2017 09-Jul-17 25,379.639 - 7.46% GS 2017 28-Aug-17 30,316.072 - 6.25% 2018 (conv) 02-Jan-18 16,886.80 - 7.83% GS 2018 11-Apr-18 73,000.00 - 8.24% GS 2018 22-Apr-18 75,000.00 - 10.45% GS 2018 30-Apr-18 3,716.00 - 5.69 % GS 2018(Conv)] 25-Sep-18 16,130.00 - 12.60% GS 2018 23-Nov-18 12,631.88 - 5.64% GS 2019 02-Jan-19 10,000.00 - 6.05% GS 2019 02-Feb-19 53,000.00 - 7.28% GS 2019 03-Jun-19 53,000.00 - 6.05% GS 2019 (con) 12-Jun-19 11,000.00 - 6.90% GS 2019 13-Jul-19 45,000.00 - 10.03% GS 2019 09-Aug-19 6,000.00 - 6.35% GS 2020 (con) 02-Jan-20 61,000.00 - 8.19% GS 2020 16-Jan-20 74,000.00 - 10.70% GS 2020 22-Apr-20 6,000.00 - 7.80% GS 2020 03-May-20 75,000.00 - 8.27% GS 2020 09-Jun-20 73,000.00 - 8.12% GS 2020 10-Dec-20 76,000.00 - FRB 2020 21-Dec-20 13,000.00 - 11.60% GS 2020 27-Dec-20 5,000.00 - 7.80% GS 2021 11-Apr-21 66,000.00 - 7.94% GS 2021 24-May-21 49,425.00 - 10.25% GS 2021 30-May-21 26,213.32 - 8.79% GS 2021 08-Nov-21 83,000.00 - 8.20% GS 2022 15-Feb-22 57,632.33 - 8.35% GS 2022 14-May-22 77,000.00 - 8.15% GS 2022 11-Jun-22 83,000.00 - 8.08% GS 2022 02-Aug-22 68,969.41 - 5.87% GS 2022 (conv) 28-Aug-22 11,000.00 - 8.13% GS 2022 21-Sep-22 70,495.28 - 6.84% GS 2022 19-Dec-22 45,000.00 - 6.30% GS 2023 09-Apr-23 13,000.00 - 7.16% GS 2023 20-May-23 77,100.00 - 1.44% II GS 2023 05-Jun-23 1,152.55 - 6.17% GS 2023 (conv) 12-Jun-23 14,000.00 - 8.83% GS 2023 25-Nov-23 83,000.00 - 7.68% GS 2023 15-Dec-23 88,132.01 - IINSS -Cumulative 1.5% GS 2023 25-Dec-23 64.84 - 7.35% GS 2024 22-Jun-24 90,168.02 - 8.40% GS 2024 28-Jul-24 90,000.00 - FRB 2024 07-Nov-24 65965.0280 - 9.15% GS 2024 14-Nov-24 92,000.00 - 7.72% GS 2025 25-May-25 86,000.00 - 8.20% GS 2025 24-Sep-25 90,000.00 - 5.97 % GS 2025 (Conv) 25-Sep-25 16,687.95 - 7.59% GS 2026 11-Jan-26 87,000.00 - 8.33% GS 2026 09-Jul-26 90,000.00 - 6.97% GS 2026 06-Sep-26 91,000.00 - 10.18% GS 2026 11-Sep-26 15,000.00 - 8.15% GS 2026 24-Nov-26 86,489.21 - 8.24% GS 2027 15-Feb-27 93,388.55 - 6.79% GS 2027 15-May-27 24,000.00 - 8.26% GS 2027 02-Aug-27 73,427.33 - 8.28% GS 2027 21-Sep-27 89,252.24 -

Contd.

iv

Nomenclature Date of maturity Outstanding Stock (` Crore) of which: MSS

6.01% GS GS 2028 (C Align) 25-Mar-28 15,000.00 -

8.60% GS 2028 02-Jun-28 84,000.00 -

6.13% GS 2028 04-Jun-28 11,000.00 -

7.59% GS 2029 20-Mar-29 88,000.00 -

6.79% GS 2029 26-Dec-29 88801.1230 -

7.88% GS 2030 19-Mar-30 89,000.00 -

7.61% GS 2030 09-May-30 85,000.00 -

9.20% GS 2030 30-Sep-30 61,884.55 -

8.97% GS 2030 05-Dec-30 90,000.00 -

8.28% GS 2032 15-Feb-32 90,687.11 -

8.32% GS 2032 02-Aug-32 89,434.05 -

7.95% GS 2032 28-Aug-32 89,000.00 -

8.33% GS 2032 21-Sep-32 1,522.48 -

8.24% GS 2033 10-Nov-33 87275.0000 -

6.57% GS 2033 05-Dec-33 22,000.00 -

7.50% GS 2034 10-Aug-34 90,000.00 -

7.73% GS 2034 19-Dec-34 73,000.00 -

FRB 2035 25-Jan-35 350.00 -

7.40% GS 2035 09-Sep-35 52245.0000 -

8.33% GS 2036 07-Jun-36 86,000.00 -

6.83% GS 2039 19-Jan-39 13,000.00 -

8.30% GS 2040 02-Jul-40 90,000.00 -

8.83% GS 2041 12-Dec-41 90,000.00 -

8.30% GS 2042 31-Dec-42 90,000.00 -

9.23% GS 2043 23-Dec-43 79,472.28 -

8.17% GS 2044 01-Dec-44 86,000.00 -

8.13% GS 2045 22-Jun-45 73,000.00 -

7.06% GS 2046 10-Oct-46 34,000.00 -

6.62% GS 2051 28-Nov-51 25,000.00 -

7.72% GS 2055 26-Oct-55 32,000.00 -

Total 48,45,535.50

v

Statement 4: Maturity Profile of Government Securities

as on End-June 2017

Year of maturity Outstanding Stock (` crore)

2017-18 102,823

2018-19 243,478

2019-20 250,000

2020-21 248,000

2021-22 282,271

2022-23 355,465

2023-24 276,449

2024-25 338,133

2025-26 279,688

2026-27 375,878

2027-28 201,680

2028-29 183,000

2029-30 177,801

2030-31 236,885

2031-32 90,687

2032-33 179,957

2033-34 109,275

2034-35 163,350

2035-36 52,245

2036-37 86,000

2037-38 -

2038-39 13,000

2039-40 -

2040-41 90,000

2041-42 90,000

2042-43 90,000

2043-44 79,472

2044-45 86,000

2045-46 73,000

2046-47 34,000

2051-52 25,000

2055-56 32,000

Total 48,45,536

vi

Statement 5:Calendar for Auction of Treasury Bills during July – September 2017

(Amount in ` crore)

Date of Auction 91 Days 182 Days 364 Days Total

July 5, 2017 10,000 0 6,000 16,000

July 12, 2017 10,000 7,000 0 17,000

July 19, 2017 10,000 0 6,000 16,000

July 26, 2017 10,000 7,000 0 17,000

Aug 2, 2017 10,000 0 6,000 16,000

Aug 9, 2017 10,000 7,000 0 17,000

Aug 17, 2017 10,000 0 6,000 16,000

Aug 23, 2017 10,000 7,000 0 17,000

Aug 30, 2017 10,000 0 6,000 16,000

Sept 7, 2017 10,000 7,000 0 17,000

Sept 13, 2017 10,000 0 6,000 16,000

Sept 20, 2017 10,000 7,000 0 17,000

Sept 27, 2017 10,000 0 6,000 16,000

Total 1,30,000 42,000 42,000 2,14,000

vii

Statement 6: Calendar for Auction of G-Secs Bills during April - September 2017

(Amount in ` Crore)

Sr. No. Week of Auction Amount Security-Wise allocation

1 April 3-7, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore




5 May 1-5, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore




9 May 29- June 2, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore

10 June 5- June 9, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore

11 June 19- June23, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore

12 June 26- June30, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore

viii

13 July 3- 7, 2017 18,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 8,000-9,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 3,000-4,000 crore

14 July 10-14, 2017 18,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 8,000-9,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 3,000-4,000 crore



17 July 31- Aug 4, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore

18 Aug 7- 11, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore



21 Aug 28- Sept 1, 2017 18,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 8,000-9,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 3,000-4,000 crore

22 Sept 4 - 8, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore

23 Sept 18 – 22, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore

24 Sept 25 – 29, 2017 15,000 i) 5-9 Years for ` 3,000-4,000 crore ii) 10-14 Years for ` 6,000-7,000 crore iii) 15-19 Years for ` 2,000-3,000 crore iv) 20 Years & Above for ` 2,000-3,000 crore

Total 3,72,000

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