Government buys back Rs 13,788 crore G-sec in RBI's switch auction

Mumbai, Mar 2 (PTI) The Government of India bought back government securities (G-secs) worth Rs 13,787.701 crore from the switch auction conducted by the Reserve Bank of India (RBI), while issuing bonds worth Rs 13,646.896 crore, according to the release.

The securities repurchased by the government were part of the scheduled bonds set to mature in the next financial year. These included Rs 102.335 crore of 5.63 per cent GS 2026, Rs 1,425 crore of 7.33 per cent GS 2026, Rs 4,450.806 crore of 8.15 per cent GS 2026, Rs 2,500.472 crore of 8.15 per cent GS 2026, Rs 2,009.560 crore of 8.24 per cent GS 2027, and Rs 3,300 crore of 8.24 per cent GS 2027.

In exchange, the government issued Rs 103.281 crore of 6.92 per cent GS 2039, Rs 1,368.733 crore of 7.50 per cent GS 2034, Rs 4,556.164 crore of 6.57 per cent GS 2033, Rs 2,331.967 crore of 8.32 per cent GS 2032, Rs 1,886.241 crore of 8.32 per cent GS 2032, and Rs 3,400.510 crore of 6.57 per cent GS 2033, the release added.

This is the third switch auction announced by the RBI this month. In a bond switch, the government replaces bonds maturing in the near term with long- term instruments.

The switch operation is expected to ease redemption pressure in the next financial year, when government bond maturities worth Rs 5.47 lakh crore are due. With gross market borrowing already budgeted at Rs 17.2 lakh crore, the move helps smooth the maturity profile and manage repayment obligations more effectively.

The central government budgeted net market borrowing at Rs 11.7 lakh crore for FY27, around Rs 50,000 crore higher than FY26. Gross market borrowing has been set at Rs 17.2 lakh crore, which is sharply higher than the current year. This increase is largely due to higher maturities scheduled for FY27. PTI MSU MR