The Bond Yield Curve as an indicator of what’s going on with the economy

The yield curve is a plot of current yields of bonds from the same type of issuer versus their respective maturities. Observing the bond yield curve is a way to find out what is going on with our economy. In this post, I discuss how one can do this some examples. Before we begin, my book … Continue reading The Bond Yield Curve as an indicator of what’s going on with the economy

Why are PPF and Sukanya Samriddhi interest rates still so high?!

The government announced the interest rates for small saving schemes yesterday and surprising or should I say unsurprisingly, the interest rates of many schemes, especially the long-term ones like PPF and Sukanya Samriddhi are still too high! Why is the government not sticking to policy? If you are surprised by the title in spite of … Continue reading Why are PPF and Sukanya Samriddhi interest rates still so high?!

Gold Price Movement: USD vs INR

Tracking gold-price movements in terms of USD and INR is a simple, but intuitive way to understand the strength of our economy. Here are some observations from staring at the historical gold price movement in USD and INR. The domestic price of gold, that is INR is the  equivalent price in USD times the exchange rate. … Continue reading Gold Price Movement: USD vs INR

Sovereign gold bonds: What you need to know before buying

Here is what you should know before buying sovereign gold bonds either in the primary market (when the next tranche is released) or secondary market (1st tranche issued in Nov 2015). In my opinion, there is only one thing that someone buying paper gold should know: just how volatile returns can be!! The fin min says They … Continue reading Sovereign gold bonds: What you need to know before buying

How to buy tax-free bonds in the secondary market

Tax-free bonds are purchased in the secondary market via a Demat account when either new ones are not available or not attractive. How does one decide between buying existing tax-free bonds and new ones? Should we just look at the coupon rate and choose the one which is higher? It depends on the purpose of the … Continue reading How to buy tax-free bonds in the secondary market