Ask us anything about investing in government bonds, treasury bills (t-bills) and state development bonds (SDLs)

Bonds
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There’s a lot of interest in government bonds (G-Secs) and treasury bills (T-bills) given that the yields are higher than fixed deposits. These bonds also look more attractive given that debt funds will no longer be eligible for long term capital gains (LTCG) and indexation.

If you have any questions about investing in government bonds, post them below.

Here are the yields on various maturities of G-secs, T-bills as of Nov 21, 2023.

Government Securities Market
7.18% GS 2033 : 7.2518%
7.26% GS 2033 : 7.2795%
7.37% GS 2028 : 7.2437%
7.06% GS 2028 : 7.2430%
7.33% GS 2026 : 7.2238%
6.99% GS 2026 : 7.2276%
91 day T-bills : 6.9374%
182 day T-bills : 7.0987%
364 day T-bills : 7.1297%

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Is it possible to transfer Govt Bonds purchased on RBI RDG Platform to Demat Account?
I know the reverse is possible and RBI allows it i.e. Transfer of Bonds from Demat to RBI Retail Direct Gilt Account.

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@Bhuvan Can I pledge these securities to get a cash margin to trade in FnO like liquid bees?

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Yep, we’ve explained the process here:

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5

G-Secs can be pledged, T-bills and SDLs cannot be. Check the Google sheet in this article for a list of securities that are allowed to be pledged.

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Okay…
The transfer of G-secs from the RBI direct account to the demat account is not allowed.
You could have just said that… :smile:
Thanks… Anyway by reading it, I was able to learn about the exact procedure for doing the reverse transfer i.e. from Zerodha to RBI RDG

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Sorry, my bad, I misread the question :grimacing:

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8

What happens to Tbills on maturity. As I have understood so far from zerodha website is that funds are credited to my account after 15 days.

Is this correct?

If so then shouldn’t we calculate effective yield taking these 15 days in account. Wouldn’t it make a significant difference in pricing of 91 day TBill?

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Hello Can I monthly interest income on investing in Govt. Bond?

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Yes.

Usually the credit happens in a few days. We mention 15 days just to account for any issues and holidays.

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The interest is paid out semi-annually. There are no Govt bonds that pay monthly interest.

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Yes theoretically it is possible but you will have to go through the pain of identifying 12 different GOI bonds that mature in various different months from Jan to Dec and purchase them at the right prices to create a monthly pay out ladder with your desired yield…

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13

I am trying to buy GSec Bond in Coin but i never see the option available. it says “There are no issues open currently. The bidding opens again next Tuesday” yesterday was Tuesday and Holiday today is Wednesday and i see that Gov Sec Bond biding is open for this week? Am i doing something wrong ?

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This will open tomorrow due the holiday yesterday.

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Hi, I am entirely new to to T-bill investing. Want to understand how this works. I purchased a 91 day T-bill on 28th march, and 10 days later I received the invested amount at a discounted rate. Why did I receive this amount? Was my bid rejected?

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Hello, cannot invest in G-sec’s via coin today, i’m getting the message " There are no issues open currently. The bidding opens again next Tuesday. Click here to know more about the upcoming issues." Today is a Thursday and I don’t want to wait for next week’s issue. Please clarify ASAP

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This week’s issue had opened and closed yesterday due to the holiday shortened week :frowning:

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Today is 11th April 2023 Tuesday 9:30am. Why am I facing this issue?

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Hi @Arnab_Sadhukhan

They will be updated by 11 AM today. You can check the issuance calendar for this week here

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T-bills are issued at a discount to par value, and upon expiry, they are redeemed at their actual value.

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