Historical fixed deposit rates, treasury bills, and government bond yields

Bonds
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Creating this thread to keep track of fixed deposit rates, treasury bills, and government bond yields. Updated as of May 2, 2024.

BAL1I-yields-on-government-bonds-treasury-bills-and-fixed-deposit-rates (3)
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You can invest in T-Bills and Government Bonds on Kite. You can check the issuance calendar for upcoming T-Bill issues here and G-Sec issues here.

10 Likes
3

Not much premium left for 10y vs 1y. Unless you expect rates to go down from here, no point taking the risk.

4

An entire generation of folks has grown-up
without seeing this happen consistently for an extended period
ever in their lifetime.

So, a lot of folks are going to experience something new “soon”. :sweat_smile:

5

I came across a an article in barrons.com. Its interesting because it says:
The U.S. Is Scaring Off Foreign Investors. Is It Becoming Un-investible?

That seems like a strange thing to say because of the fact that U.S. stocks have outperformed the rest of the world, by a huge margin, over the past decade

Watch video to know more:

https://youtu.be/o6L3zcwoFPM

6

Hey, I am new to this.
10Y yield means govt bond, right?

Many banks like Ujjivan offer 7-8% FD rate. Why does anyone choose govt bonds?

7

Risk of default is Zero as these bonds are issued by Government.

The above is the interest rate that is paid by the Bank. Example Ujjivan pays 7.75% for 990 days deposit. The 7.75% is the interest rate paid, the yield of the deposit on maturity will be a annualised yield of 8.54% as a sum of 1,000 for 990 days gives a total return of 1,235. The 235 is the interest and when you compute annualised yield it will effectively work out to 8.54%.

8

Few points of comparision…

  1. Bank deposits are not guaranteed if the bank goes bust or faces a liquidity crisis.

  2. Some bank deposits are insured, but only to a limit.
    IIRC, it is currenlty 5lac INR per bank account
    (for more details, read about DICGC insurance in india)

  3. Bank FD interest rates vary based on the investment amount.
    Banks often do not offer the highest rates for the largest amount of investment (lacs/crores).
    (this point might not be relevant when investing in thousands)

  4. Also, the high interest rates are not guranteed for 10 years.
    i.e. when if one books a 2yr FD at 8% today, one cann book 8% returns for the next 10 years.
    There is no guarantee after 2 years the bank will offer to renew FD at the same rate for subsequent years.

  5. Also, GSECs often provide higher returns than bank FDs (eg. currently some GSECs yield more than 8%).