Why Treasury rates are significantly lower as compared to other rates?
Treasury bonds are considered risk-free assets, meaning there is no risk that the investor will lose their principal i.e. investors that hold the bond until maturity are guaranteed their principal or initial investment. There is no credit risk and with lower risk, the return is also lower. Furthermore, Treasury bills and bonds are purchased by the financial institutions for fulfilling their various regulatory requirements (like SLR). For the bulk purchase, their prices rise and yields turn low. The amount of capital a bank is required to hold in support of investment in treasury bills and bonds is lower as compared to capital to be held for other instruments with very low risk.
‘The Vibrant Villages Programme’ of Government of India focuses on
Consider the following statements about International Social Security Association (ISSA):
1. Recently ESIC was awarded by the “Internat...
How many candidates are contesting in phase 3 of the Lok Sabha Elections 2024?
Mukul Rohatgi, the senior advocate is set to be appointed as the _____ Attorney General of India?
Insurance firms have to obtain prior approval from which organization to launch new products?
The International Bank for Reconstruction and Development (IBRD), has successfully priced a 5-year bond in Great British Pound sterling (GBP) set to mat...
Which of the following company is associated with development and commercialization of “Swirl Mesh Lean Direct Injection System”?
Which private sector bank has launched a service recently where customers can make transactions using just their voice as a means of authentication?
Report titled “India@100: Realizing the potential of a US$26 trillion economy” was released by?
What is the maximum weight capacity of the 'Type V Heavy Drop System' recently tested by the Indian Air Force?