dia's Government Bond Yield for 10 Year Notes rallied 10 basis points during the last 30 days which

means it became more expensive for India to borrow money from investors. During the last 12 months, India government bond yield advanced 0.79 percent. From 1998 until 2011 India's Government Bond Yield for 10 Year Notes averaged 7.92 percent reaching an historical high of 12.26 percent in February of 1999 and a record low of 4.95 percent in October of 2003. Generally, a government bond is issued by a national government and is denominated in the country`s own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds. The yield required by investors to loan funds to governments reflects inflation expectations and the likelihood that the debt will be repaid. This page includes: India Government Bond 10Y chart, historical data and news.
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About Government Bonds A government bond is a bond issued by a national government denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds. The first ever government bond was issued by the English government in 1693 to raise money to fund a war against France. Government bonds are usually referred to as risk-free bonds, because the government can raise taxes to redeem the bond at maturity. Some counter examples do exist where a government has defaulted on its domestic currency debt, such as Russia in 1998 (the "ruble crisis"), though this is very rare. As an example, in the US, Treasury securities are denominated in US dollars. In this instance, the term "risk-free" means free of credit risk. However, other risks still exist, such as currency risk for foreign investors (for example non-US investors of US Treasury securities would have received lower returns in 2004 because the value of the US dollar declined against most other currencies). Secondly, there is inflation risk, in that the principal repaid at maturity will have less purchasing power than anticipated if the inflation outturn is higher than expected. Many governments issue inflation-indexed bonds, which should protect investors against inflation risk. Bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. The most common process of issuing bonds is through underwriting. In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors. The security firm takes the risk of being unable to sell on the issue to end investors. However government bonds are instead typically auctioned. A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit (CDs) or commercial paper are considered to be money market instruments and not bonds. Bonds must be repaid at fixed intervals over a period of time (source: wikipedia).

The Advantages Income advantage one of the key reasons that bonds are a more secure investment than stocks is that they are debt securities. Whenever you are purchasing bonds, you are basically lending money that has to be repaid with interest over a specified period of time. Bonds can be issued by: businesses governments private issuers Since they can be traded just like other securities, the purchase price of bonds is subject to change. However, fluctuations in bond prices tend to be less volatile than that of stocks. Rating Advantage being subjected to certain rating systems provides the investor with another advantage when investing in bonds. These rating systems enable you to gauge how

reliable a bond can be expected to be. Ratings typically range from AAA, the highest rating possible and a bond that you can expect to be repaid in full and on time, down to a C or D rating (C = unreliable / D = a bond in default). The Disadvantages Risk disadvantage the primary disadvantage is the risk factor which stems from never knowing how reliable the ratings systems are (see above). The best example of this occurred in the 2008 home mortgage crisis where mortgage loan debt containing bonds and bond mutual funds were rated highly and considered to be very safe. Those high ratings meant nothing once there were wide-scale defaults in the industry. Security disadvantage remember right up front that bonds are only as good as the borrowers ability to repay them. If they cannot repay the bond as stated initially, then it goes into default. Additionally, if repayment occurs earlier in a bond mutual fund, this is also a key disadvantage to the investors.