The discount on state government bonds vs. central government bonds has widened in recent months
Spread (bps) of SDL yield over G-Sec yield
95.42
Apr 17
20
40
60
80
44.87
Sep 15
42.96
Oct 15
41.30
Nov 15
45.53
Dec 15
48.94
Jan 16
67.76
Feb 16
72.00
Mar 16
62.35
Apr 16
62.31
May 16
60.98
Jun 16
60.83
Jul 16
50.01
Aug 16
54.02
Sep 16
53.58
Oct 16
60.77
Nov 16
64.92
Dec 16
79.06
Jan 17
75.73
Feb 17
96.44
Mar 17
95.42
Apr 17
The yield spread refers to the monthly average gap between the yield on 10-year State Development Loans (SDLs) (as provided by CCIL) vs. the benchmark 10-year Indian government bond yield
