Historical Spreads in Bond Yields in the Indo-Pak Sub-Continent

Abstract

The Indian and Pakistani bond markets, while very different in size and volume, still share a number of common themes. They share similar food production and consumption cycles, they are net importers of crude oil and, while the manufacturing base of the Indian economy is far larger than Pakistan , when it comes to income disparity and poverty levels they share similar challenges. A comparison of the inflation and yield numbers and real rate of returns in both markets leads to some very interesting results.