Switch result: govt swaps ₹11,302 crore of 2027-29 bonds for longer ones
In the October 19 switch, the government took back ₹11,302 crore of bonds due in 2027 to 2029 and issued ₹11,651 crore of bonds due in 2033 to 2060.
Official title: Result: Conversion/Switch Auction of Government of India Securities · Press Release 2026-2027/1351
What happened
The government had offered to switch up to ₹20,000 crore. It accepted ₹11,302 crore of the shorter bonds and issued ₹11,651 crore of longer-dated bonds in exchange. A switch spreads out the government's repayment dates, so less falls due in 2027 to 2029.
Pair by pair: ₹2,000 crore of 8.26% GS 2027 became 7.19% GS 2060 at 7.8391%. ₹3,000 crore of 7.17% GS 2028 became 7.41% GS 2036 at 7.3867%. ₹1,925 crore of 7.06% GS 2028 became 7.23% GS 2039 at 7.4311%. ₹2,377 crore of 7.26% GS 2029 became 6.64% GS 2035 at 7.3598%. ₹2,000 crore of 6.79% GS 2029 became 7.57% GS 2033 at 7.3590%. Nobody offered the 6.03% GS 2029, so no switch took place there.
More destination bonds are issued than source bonds taken back because the bonds have different prices. This is an exchange, not new borrowing.
What it means for you
No direct effect on individuals. It is a debt management step to spread out repayments.
What it means for businesses
Dealers and institutions that held bonds due soon swapped them for longer-dated ones. The government now has fewer large repayments in 2027 to 2029.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.