EDGE Government Security Index (EDGEGSI) Starts 2025 with Strongest January Gain Since 2010

By Asif Khan, CFA

Chairman

EDGE AMC Limited

Posted on: 18 Feb, 2025


The EDGE Government Security Index (EDGEGSI) Index rose 2.0% in January 2025. That makes it the best start to the year for government securities since 2010 (we don't have data before that). The chart below shows the January returns for previous years. The mean return for January was 0.6% while the median was 0.9%.

EDGEGSI is a market-weighted index of government treasury bills and bonds. In the absence of a reputed index provider we at EDGE AMC use this as an internal benchmark for fixed-income fund performance.

I don't personally believe much in the predictive power of first-month returns or for that matter returns in any month. However, the very high bond yields and normalizing inflation rate meant that long-term bonds would do well. I have written on the matter extensively earlier while looking at the spread between 10-year yields on US bonds versus equivalent Bangladeshi bonds. I also included long-term bonds as a top asset class pick for 2025.

February is turning out to be an incredible month also. Historically, the best monthly return since 2010 (for all months) is 4% which came in September 2020. February 2025 might just beat that.

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  • EDGEGSI, Government Bonds, Fixed Income, Investment, Bond Market, Treasury Bills, Market Index, Financial Analysis, EDGE AMC, Economic Trends, Inflation, Interest Rates, Long Term Bonds, Bangladesh Economy, Investment Strategy

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