Govt to buyback ₹25,000 crore in bonds via RBI auction on June 5

The government will repurchase select 2026 and 2027 securities via an RBI auction to reduce liabilities and improve the fiscal and debt profile

The government has offered to repurchase ₹25,000 crore worth of government securities through a buyback auction to be conducted by the Reserve Bank of India (RBI) on Thursday.

 

The securities targeted for buyback include the 7.27 per cent 2026 bond maturing on 8 April, the 6.99 per cent 2026 bond maturing on 17 April, the 6.97 per cent 2026 bond maturing on 6 September, the 7.33 per cent 2026 bond maturing on 30 October, and the 8.24 per cent 2027 bond maturing on 15 February.

 

By repurchasing its own outstanding bonds from the market before maturity, the government reduces its liabilities and strengthens its fiscal position. The process involves using government funds to buy back these bonds, which are then typically retired, decreasing the total outstanding debt. This strategy allows the government to improve its debt profile by repurchasing higher-cost or shorter-term bonds.