Why Indian government bonds are looking better now
Indian government bonds just got some relief thanks to a government debt switch conducted with the Reserve Bank of India.
By moving around when certain debts are due, the government has eased a lot of pressure that was building up for 2026-27, when record borrowing and repayments were set to squeeze the market and push up interest rates.
Less strain on market
Less near-term debt means less strain on the market—and that usually helps keep things steady for everyone, from big investors to regular folks tracking loan rates.
Even with rate cuts and bond buying by the RBI, there was so much borrowing planned that yields (think: interest rates) were still rising.
This switch helps calm things down.
Government bought back ₹75,504 crore of bonds
On February 12, the government bought back ₹75,504 crore of bonds maturing in the financial year 2026-27 and swapped them for longer-term ones maturing in 2040.
That stretches out repayments over more years instead of piling them all up soon.
Traders expected yields to decline, with some forecasting a gap-down opening—good news if you're watching markets or just curious about how India manages its money moves.