Govt buys back Rs 13,788 crore G-sec in RBI’s switch auction

Mumbai: The government bought back government securities worth Rs 13,787.70 crore in a switch auction conducted by the RBI, while issuing fresh bonds worth Rs 13,646.89 crore, an official release said.

The repurchased securities were bonds maturing in the next financial year, including multiple tranches of 2026 and 2027 maturities. In return, the government issued longer-dated securities maturing between 2032 and 2039. This is the third switch auction announced by the RBI this month.

Through such operations, the government replaces near-term maturing bonds with long-term instruments to better manage its debt profile.

The move is aimed at easing redemption pressure in FY27, when bond maturities worth Rs 5.47 lakh crore fall due. With gross market borrowing for FY27 budgeted at Rs 17.2 lakh crore, the switch helps smoothen the maturity schedule and manage repayments more efficiently.

The Centre has pegged net market borrowing for FY27 at Rs 11.7 lakh crore, about Rs 50,000 crore higher than FY26, largely due to elevated maturities.