RBI to switch bonds worth Rs 250 billion on Nov. 16
In short
The Reserve Bank of India will start a Rs 250 billion bond switch auction on November 16.
It will replace six bonds that mature between 2027 and 2029 with longer-term bonds due in 2062. The government is using the move to manage its debt repayment schedule.
What the reporting says
The Reserve Bank of India will initiate a Rs 250 billion bond switch auction on November 16, replacing six bonds maturing between 2027 and 2029 with longer-dated securities maturing in 2062. The move is meant to optimize the government’s debt repayment schedule, according to the market summary. It follows a similar bond buyback and issuance strategy carried out in October.
Why it matters
The RBI’s planned switch auction is a debt-management operation that swaps shorter-dated government bonds for longer-maturity securities. The reported size is Rs 250 billion, and the switch date is November 16. The action is aimed at stretching the government’s repayment profile, following a similar buyback and issuance move in October.