A bond switch is a mechanism through which the government replaces existing shorter duration sovereign bonds with long-duration papers. Both the source and destination bonds are determined by the government depending upon its debt obligations. The government chooses to either switch securities with market participants or directly with the Reserve Bank of India depending on market appetite. The key objective of these operations is to smoothen the government's liability profile while ensuring market development. Bond switch auctions with market participants typically happen on the third Monday of every month. The government aims to switch bonds worth Rs 1 lakh crore in FY23.