Do remember the papers were priced at a free auction. The buyers were predominantly public sector banks and not foreign investors who can be expected to have biases. The public sector banks should know what is happening in the Mantralaya of each state government. Even Gujarat is not the best as far as they are concerned. That accolade is reserved for Tamil Nadu whose debt papers were priced at 9.2 per cent.
Subhomoy is a Deputy Editor based in New Delhi.