The Government of India on Thursday, February 12, bought back government securities (G-secs) worth ₹75,504.43 crore from the Reserve Bank of India (RBI) through a switch auction, while issuing bonds worth ₹69,436.15 crore.The securities repurchased by the government were part of the scheduled bonds set to mature in the next financial year. These included ₹3,527.69 crore of 7.27% GS 2026, ₹34,957.71 crore of 8.33% GS 2026, ₹19,958.78 crore of 8.15% GS 2026, and ₹17,060.24 crore of 8.24% GS 2027.
In exchange, the government issued ₹69,436.15 crore of 8.30% GS 2040 bonds.
The switch operation is expected to aim at easing redemption pressure in the next financial year, when government bond maturities worth ₹5.47 lakh crore are due.With gross market borrowing already budgeted at ₹17.2 lakh crore, the move helps smoothen the maturity profile and manage repayment obligations more effectively.The central government budgeted net market borrowing at ₹11.7 lakh crore for FY27, around ₹50,000 crore higher than FY26.Gross market borrowing, has been set at ₹17.2 lakh crore, which is sharply higher than the current year. This increase is largely due to higher maturities scheduled for FY27.Also read: Loan recovery tightening: RBI proposes mandatory agent training, call recordingsAfter the 2026-27 budget announcement, the yield on the government securities surged by as much as 0.10%, due to higher than expected gross borrowing.(Edited by : Srabastee Biswas)
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