RBI Switch Auction: Government Issues Rs 136.47 Billion, Buys Back Rs 137.88 Billion

The Reserve Bank of India has confirmed the successful completion of a government bond switch auction, designed to extend debt maturities and reduce refinancing risks. The government issued Rs 136.47 billion in new securities while simultaneously buying back Rs 137.88 billion worth of shorter-tenor bonds.  

Key Highlights 

• Government issued Rs 136.47 billion and bought back Rs 137.88 billion in bonds  
• 5.63% 2026 bond switched to 6.92% 2039 debt at 7.0193% cut-off yield  
• 8.24% 2027 bond switched to 6.57% 2033 debt at 6.6984% yield  
• 8.24% 2027 bond also switched to 8.32% 2032 debt at 6.5751% yield  
• 7.33% 2026 bond switched to 7.50% 2034 debt at 6.6747% yield  
• Objective is to smoothen maturity profile and reduce rollover risks  

Industry Significance  
Analysts highlight that such switch operations are vital for India’s debt management strategy, allowing the government to extend maturities while maintaining investor confidence. The cut-off yields reflect strong demand for longer-term securities, supporting fiscal stability and liquidity in the sovereign bond market.  

Sources: Reserve Bank of India Auction Data, Business Standard, Economic Times