What is the impact of repo rates on T-bills?
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The RBI has changed the repo rate by 25 basis points, so how is it going to impact the interest rate of T-bills? Is it good for investors to lock their money now or better to wait for potentially higher rates, how does such a boost affect the yield on new T-Bill issuances?
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With the increase in the repo rate, there will eventually be an increase in T-bill yields. With this, investors get higher returns on investments. So its very important to consider the general economic situation and future interest rates in the coming years. The interest rate will continue to rise in the future. So locking in your investment is a good move.