 worth Rs 12,686.974 crore from the switch auction conducted by RBI){kind=link}
New Delhi: The Government of India repurchased government securities (G-secs) worth Rs 12,686.974 crore through a switch auction conducted by the Reserve Bank of India on Monday, while simultaneously issuing fresh bonds valued at Rs 13,311.383 crore.
The switch operation is part of the government’s broader debt management strategy aimed at smoothing repayment schedules and reducing pressure from large bond maturities expected in the coming financial years.
Key Securities Bought Back Include Bonds Maturing In FY26 And FY27
Among the securities repurchased were bonds scheduled to mature later in the current financial year.
These included:
- Rs 2,316 crore of 5.74% Government Security (GS) 2026
- Rs 1,000 crore of 8.24% GS 2027
In addition to these, the government also bought back securities set to mature in subsequent years, including FY28, FY29, and FY30.
Other repurchased securities included:
- Rs 3,000 crore of 6.79% GS 2027
- Rs 1,640.594 crore of 8.60% GS 2028
- Rs 3,000 crore of 7.59% GS 2029
- Rs 1,730.380 crore of 7.10% GS 2029
However, the government did not accept bids for certain securities, including:
- 6.64% GS 2027
- 7.04% GS 2029
- 7.88% GS 2030
Switch Operation To Help Manage Heavy Bond Maturities
The switch auction is expected to significantly ease redemption pressure in the next financial year.
Government bond maturities worth Rs 5.47 lakh crore are scheduled for FY27, creating a substantial repayment burden.
With gross market borrowing already budgeted at Rs 17.2 lakh crore, such switch operations allow the govt to spread repayment obligations over a longer period and maintain liquidity stability.
This strategy helps improve the maturity profile of government debt, reducing the risk of large repayment spikes in any single year.
Borrowing Plans Rise Due To Higher Scheduled Maturities
Net market borrowing for FY27 has been budgeted at Rs 11.7 lakh crore, which is about Rs 50,000 crore higher than the borrowing target for FY26.
Meanwhile, gross market borrowing has been set at Rs 17.2 lakh crore, marking a sharp increase. The rise is largely attributed to the higher volume of bond maturities falling due in FY27.
Financial experts note that such debt management operations are crucial to maintaining fiscal discipline.