The expected inflation rate over the next ten years implied by the inflation-indexed bonds
rose 0.3 percentage points in the 14 months after July 2016, but then increased 0.8 percentage points in the next five months.
One can also look at tax-free bonds, non-convertible debentures, or NCDs, and inflation-indexed bonds
The 10-year inflation-indexed bonds
launched earlier this year, linked to the Wholesale Price Index could not attract much interest from investors.
Although the popular press often labels inflation-indexed bonds
as "exotic securities," nothing could be farther from reality.
New fixed-income instruments, such as inflation-indexed bonds
, will help.
"Over that time they've been first-movers into innovative strategies such as inflation-indexed bonds
(three years before the US issued TIPS), separating alpha and beta, and adopting the All Weather principles eight years ago.
For average taxpayers, there are other take-aways: Additional rebate on home loans for first-time buyers, two-year extension of the Rajiv Gandhi Equity Scheme for first-time investors with higher limit of Rs.1.2 million, and launch of inflation-indexed bonds
* Plans to issue inflation-indexed bonds
* Proposes capital allowance of 15 pct to companies on investments of more than 1 billion rupees
The topics discussed include rediscovering the macroeconomic roots of financial stability policy, inflation-indexed bonds
and the expectations hypothesis, the economics of credit default swaps, equilibrium in the initial public offering market, and carry trade and momentum in currency markets.
In order to boost the primary market for inflation-indexed bonds
, primary dealers, who are the market makers of government bonds, will be required to offer sales and purchase prices of inflation-indexed bonds
An alternative method of extracting inflation expectations arose from the issuance of financial assets indexed to the price indices of the economy (inflation-indexed bonds
In the US, inflation-indexed bonds
issued by the Federal government are called TIPS (Treasury Inflation Protected Securities).