The government announced a switch auction of ₹30,000 crore worth of government securities on Tuesday, according to a notification issued by the Reserve Bank of India (RBI). The auction will be conducted on June 15 using the multiple-price method through the RBI's e-Kuber platform. Bids will be accepted between 10.30 am and 11.30 am on June 15, with results announced on the same day and settlement scheduled for June 16.
The switch auction involves eight securities maturing between 2027 and 2030 being replaced with longer-dated bonds maturing between 2034 and 2039. The securities being bought back include ₹4,000 crore each of the 6.79 per cent GS 2027, 6.64 per cent GS 2027, 7.37 per cent GS 2028, 7.59 per cent GS 2029 and 7.04 per cent GS 2029; ₹3,000 crore of the 8.60 per cent GS 2028; ₹2,000 crore of the 7.26 per cent GS 2029; and ₹5,000 crore of the 7.88 per cent GS 2030. The destination securities comprise the 7.50 per cent GS 2034, 6.67 per cent GS 2035, 6.22 per cent GS 2035, 6.92 per cent GS 2039, 6.64 per cent GS 2035, 6.33 per cent GS 2035 and 6.64 per cent GS 2035.
This switch auction represents a strategic move by the government to replace shorter-dated securities with longer-dated bonds, extending the maturity profile of its debt portfolio. The auction will provide market participants with opportunities to adjust their portfolios while the government optimizes its debt management strategy. The multiple-price method ensures competitive pricing across different maturities, with the auction being conducted entirely through electronic platforms for operational efficiency.
