Mumbai, February 12 The Indian Government on Thursday bought back government securities (G-secs) worth ₹75,504.43 crore from the Reserve Bank of India (RBI) through a switch auction, while also issuing bonds worth ₹69,436.15 crore.
The securities repurchased by the government were part of the scheduled bonds that were set to mature in the next financial year. These included ₹3,527.69 crore of 7.27 per cent GS 2026, ₹34,957.71 crore of 8.33 per cent GS 2026, ₹19,958.78 crore of 8.15 per cent GS 2026, and ₹17,060.24 crore of 8.24 per cent GS 2027.
In exchange, the government issued ₹69,436.15 crore of 8.30 per cent 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 smooth the maturity profile and manage repayment obligations more effectively.
The central government has budgeted net market borrowing at ₹11.7 lakh crore for FY27, which is around ₹50,000 crore higher than FY26.
Gross market borrowing has been set at ₹17.2 lakh crore, which is significantly higher than the current year. This increase is largely due to higher maturities scheduled for FY27.
Following the 2026-27 budget announcement, the yield on the government securities surged by as much as 0.10 per cent, due to higher than expected gross borrowing.
