RBI conducts conversion auction of government securities, extends maturities

The Reserve Bank of India executed a conversion/switch auction, accepting offers to convert shorter-dated government securities (2027-2029) into longer-dated ones (2034 and 2060). This operation extends the average maturity of the government's debt portfolio, likely to manage redemption pressures and smooth the yield curve. The auction saw partial acceptance, with some source securities undersubscribed relative to notified amounts, indicating moderate investor appetite for duration extension.