Bonds are beating stocks this year
- Narendra Modi holds talks with German Chancellor Angela Merkel
- Walmart nominates McDonald’s CEO Steve Easterbrook to board
- Apple to replace some MacBook Pro faulty batteries
- Karnataka elections: JD(S) leader HD Kumaraswamy files his 2nd nomination from Channapatna
- Karnataka elections: BJP names Karunakar Reddy from Harapannahalli in 3rd list
The S&P BSE India Government Bond index has given higher returns than the S&P BSE Sensex in 2016 so far, as the chart shows. The indices, taken from the S&P Dow Jones indices, have been rebased to 100 at the start of the year. The chart reflects total returns from both indices. Indian bond yields have fallen as the Reserve Bank has cut its policy rate, due to lower inflation. Bond prices move inversely with yields. With expectations of another rate cut on the anvil, the prospects for bonds continue to be robust.