India swaps short term debt for long term bonds with central bank
India swapped 755bn rupees of near-term bonds for 2040 debt with the central bank today. This move eases repayment pressure before record borrowing starts.
The Indian government has successfully completed a significant bond switch operation today, February 12, 2026, in India 
IN to ease near-term redemption pressure on government finances. In this transaction, the government bought back 755.04 billion rupees of bonds maturing in the 2026-27 fiscal year from the Reserve Bank of India. Simultaneously, it issued 694.36 billion rupees of the 8.30% 2040 government bond to replace the shorter-term debt with longer-dated paper.
IN to ease near-term redemption pressure on government finances. In this transaction, the government bought back 755.04 billion rupees of bonds maturing in the 2026-27 fiscal year from the Reserve Bank of India. Simultaneously, it issued 694.36 billion rupees of the 8.30% 2040 government bond to replace the shorter-term debt with longer-dated paper.This strategic move by the Finance Ministry comes as the administration prepares for a planned record borrowing of 17.2 trillion rupees in the 2026-27 fiscal year. By converting debt maturing in the next fiscal year into longer-term obligations, the government is actively managing its debt profile and reducing rollover risk within the Indian government bond market. The operation, which exceeded budgeted expectations, is a key component of the broader debt management strategy overseen by officials including Finance Minister Nirmala Sitharaman.
