Tag: liquidity

Spread between one year and ten years bond remains at decade high : Operation Twist ?

Past three months have seen the yields on short tenor papers (~ one year) crash by almost 125 bps while the yields for long tenor bonds haven’t seen a commensurate decrease. Yields on these longer tenor 10 year bonds have reduced by ~40 bps only. This has resulted in spreads between one year and ten years paper reaching levels last observed in 2010( as depicted in below chart). The tenor spread has remained over 200 bps consistently for the past […]

Mutual Funds deployed whopping one lakh crore in T-Bills

Mutual fund exposure to Treasury Bills increased to INR 1.82 lakh Cr in May’20 registering month-on-month increase of more than rupees one lakh crore ( the exposure to T-Bills in April was 0.816 lakh cr). Treasury bills or T-bills are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest. Instead, they are issued at […]

Back To Top
Social media & sharing icons powered by UltimatelySocial
error

Please spread the word and grow the tribe:)

LinkedIn