The Centre's net borrowings stood at Rs 61,318 crore (Rs 613.18 billion) till August 8, completing 57.2 per cent of the budgeted Rs 1,07,194 crore (Rs 1,071.94 billion) for this financial year, PNB Gilts said in New Delhi on Tuesday.

The net mop up till the first week of this month was up by mere two per cent from Rs 60,123 crore (Rs 601.23 billion) garnered during the same period in 2002-03, mainly due to substantial redemptions, the primary dealer said in its latest market update.

Though the government's gross borrowings stood at Rs 84,030 crore (Rs 840.30 billion) till August 8, there was an about 14 per cent increase in redemptions, resulting in net mop up of Rs 61,138 crore during the period in review, PNB Gilts said.

The Centre's gross borrowings till the latest period in this year had risen by five per cent from Rs 80,028 crore (Rs 800.28 billion) garnered in the corresponding period in 2002-03 and completed 50.6 per cent of the budgeted Rs 1,66,230 crore (Rs 1,662.30 billion) for this fiscal.

Redemptions shot up to Rs 22,712 crore (Rs 227.12 billion) till August 8 as compared to Rs 19,905 crore (Rs 199.05 billion) during the same period in previous year, with retiring of the 364 day treasury bills marking speedy rise in comparison to the dated government securities.

The redemption of 364 day T-bills was up by 34 per cent to Rs 10,028 crore (Rs 100.28 billion) till the first week of this month as against Rs 7,500 crore (Rs 75 billion) in the same period in 2002-03, while that of the dated securities rose by a mere two per cent to Rs 12,684 crore (Rs 126.84 billion) as compared to Rs 12,405 crore (Rs 124.05 billion) in the previous year.

Presenting an "optimistic" outlook for the government securities, PNB Gilts said, "The central bank has been able to successfully remove the distortion in the short-end of the yield curve and all this augurs well for a softer interest rate regime ahead."