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T-bills keep double digit real returns on falling inflation
The inflation-adjusted or real return for 364-day Treasury bill investors stood at 12.91 percent in October even as the average yield on the paper fell to 15.67 percent from 16.81 percent in September.
Investors in government paper have retained double-digit returns above the rate of inflation, benefitting from a reduction in cost of living measure even as interest on the securities decline.
The inflation-adjusted or real return for 364-day Treasury bill investors, for instance, stood at 12.91 percent in October even as the average yield on the paper fell to 15.67 percent from 16.81 percent in September.