Government Defers Rs 75,500 Crore Debt to 2040, Easing 2026 Financial Pressure

• Central government 'switched' government securities (G-Secs) worth Rs 75,504.43 crore in an auction.
• Old bonds maturing in 2026-27 were repurchased and new 8.30% interest bonds issued, maturing in 2040.
• The 'switch operation' aims to manage next year's financial pressure, as Rs 5.47 lakh crore old debt is due.
• This move provides financial flexibility, preventing the need for significant new borrowing and potential interest rate hikes.
• Government bond 'yield' increased by 0.10% after the auction, indicating market activity regarding borrowing plans.