The proactive measures undertaken by Reserve Bank of India (RBI) helped to develop the government securities market and added depth and liquidity. The proprietary deals constitute the largest part of the dealing in Government securities market. Commercial Banks offer constituent services to...

In recent years, there has been renewed interest in the yield curve as a predictor of future economic activity. In this paper, we re-examine the evidence for this predictor for the Indian market. The paper tries to indicate how the yield curve spread in a government securities market may be used...