Where do you see opportunities on the long-end of the yield curve?The yield curve is so steep that the spread between the one-year Treasury bill and seven-year government bond is roughly 250 basis points. This allows for a reasonable excess return over the one-year Treasury bill, if yields are in a range. Even accounting for minor mark-to-market fluctuations, it is a good carry-adjusted duration trade if one is positioned at the right points on the yield curve. Simply put, carry is income accrual from yields. … [Read more...] about Gilt fund investors must have a horizon of more than 3 years: IDFC MF
Muni yield curve
Indias ten year bond yield reversed from higher levels today and is currently trading at 6.85% against a previous close of 6.93%, amid rising demand among foreign institutional investors. FIIs have invested around $508.40 million in the month of Feb, reversing a four month selling trend which was expected to pick up pace given the pressure of rising interest rates in the US. However India bonds have seen a lot of interest, even from domestic mutual funds, especially after SEBI raised limits to invest in debt from 40% from 35% earlier. Yesterdays economic data releases on domestic GDP, fiscal deficit and manufacturing PMI were positive and are also indicating that the impact of demonetization is likely to be minimal on growth and industrial recovery going ahead. … [Read more...] about Volatile Domestic Bond yields
Physical gold: Buying jewellery and gold coins is still one of the most popular modes of investing in gold. But holding gold in physical forms comes with two main disadvantages. Apart from the additional cost incurred for safekeeping, buying physical gold also comes with purity-related concerns. Additionally, one may also face challenges in accessing physical gold stored in bank lockers or selling it during a political turmoil or natural disaster. … [Read more...] about What’s the best way to invest in gold now?
The brokerage pointed out that a key argument for the current rally in global equities is that the ‘discount rate’ has dipped sharply due to the unprecedented accommodative stance of global central banks in response to the pandemic, which has brought down the Rf (risk-free rate) while rising risk appetite is reducing the ERP (equity risk premium). … [Read more...] about COVID-19, marginal dip in discount rate may deflate the current bull market: ICICI Securities
Williamson said it will be "a lot different" to facing Australian speedsters in their own den. New Zealand are still reeling from a 0-3 thrashing in their last away Test series in Australia where Pat Cummins, Josh Hazlewood and Mitchell Starc made life miserable for the Black Caps batsmen. … [Read more...] about India vs New Zealand: Williamson promises quintessential NZ approach to handle IND pace