Government buys back Rs 6,309 crore G-Secs in RBI switch auction

Metro India News | NEW DELHI

The government repurchased government securities (G-Secs) worth Rs 6,309 crore through a switch auction conducted by the Reserve Bank of India (RBI) and issued bonds totalling Rs 6,431.797 crore, according to an official release.

The buyback included Rs 1,684 crore of 7.33 per cent GS 2026, Rs 1,035 crore of 5.74 per cent GS 2026, Rs 590 crore of 8.15 per cent GS 2026, and Rs 3,000 crore of 8.24 per cent GS 2027. In return, the government issued Rs 1,719.236 crore of 6.57 per cent GS 2033, Rs 986.526 crore of 7.62 per cent GS 2039, Rs 605.609 crore of 6.57 per cent GS 2033, and Rs 3,120.426 crore of 7.40 per cent GS 2062.

G-Secs are considered low-risk debt instruments backed by a sovereign guarantee, offering fixed returns. Through a switch auction, bonds maturing in the near term are exchanged for longer-dated instruments, helping ease repayment pressures in the coming financial year.

The move comes ahead of significant maturities, with government bond repayments worth Rs 5.47 lakh crore due next year. With gross market borrowing already budgeted at Rs 17.2 lakh crore, the switch auction is expected to smooth the maturity profile and manage debt obligations more effectively.

This is the fourth such auction conducted by the RBI since February. Previous operations have seen buybacks totalling Rs 98,591.701 crore, according to RBI data. These measures are part of ongoing efforts to maintain liquidity and reduce short-term repayment pressures while extending the average maturity of government debt.