RBI conducted a conversion auction of government securities on October 19, 2026, involving ₹18,000 crore across six source securities, including 8.26% GS 2027 and 7.17% GS 2028, switching to long-dated papers like 7.19% GS 2060.
RBI Executes ₹18,000 Crore G-Sec Conversion Auction
The Reserve Bank of India conducted a conversion (switch) auction of Government of India securities on October 19, 2026. The auction involved six source securities with a total notified amount of ₹18,000 crore. Instruments included the 8.26% GS 2027 (₹2,000 crore), 7.17% GS 2028 (₹3,000 crore), and others maturing between 2027 and 2029.
The destination securities comprised longer-dated papers: 7.19% GS 2060, 7.41% GS 2036, 7.23% GS 2039, 6.64% GS 2035, 7.50% GS 2034, and 7.57% GS 2033. The operation allowed holders of shorter-term securities to exchange into longer-term paper, aiding portfolio realignment and yield curve management.
Such conversion auctions help the government manage its debt maturity profile without increasing outstanding liabilities. Market participants benefit from enhanced liquidity and flexibility. From a legal perspective, these auctions fall under RBI’s Public Debt Management framework and are governed by the Government Securities Act, 2006, ensuring fair access and transparency.
Citations
- Government Securities Act, 2006
