The yield curve and what to bear in mind
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The article discusses the yield curve and its implications for investors. It mentions that the market is divided on which part of the curve to focus on, as the yield curve has flattened. The rates for 1-year T-bills and 30-year GSEC are around 7%. The RBI repo rate is 6.5%, and the next move is expected to be a rate cut. The article also discusses the factors affecting the yield curve, such as inflationary expectations and the dual mandate of the US Fed. It highlights the importance of demand-supply dynamics in long-term bonds and the fiscal deficits in the US. The article concludes by stating that there is value in keeping positions in longer Indian Government Bonds.
#YieldCurve #Investing #Bonds #InterestRates #Inflation
https://m.economictimes.com/markets/stocks/news/the-yield-curve-and-what-to-bear-in-mind/articleshow/111708768.cms