Bonds yields edge higher after RBI cuts SLR, HTM requirements

06 Aug 2014 Evaluate

Bond yields edged higher after the central bank's plan to cut the mandatory statutory liquidity ratio sparked fears about new supply at a time when India plans to raise Rs 647000 crore through market borrowings in the fiscal year ending in March 2015. Meanwhile, In its third bi-monthly monetary policy, Reserve Bank of India kept the repo rate unchanged as widely expected, but cut the banks' the statutory liquidity ratio (SLR), by 50 basis points to 22% of deposits and cut the ceiling on debt that must be held-to-maturity (HTM) by lenders by another 50 bps to 24% , effective on August 9

On the global front, U.S. Treasuries' prices jumped on Tuesday as Wall Street equities sold off and growing worries over Ukraine and other issues spurred safe-haven buying of American debt. Meanwhile, brent crude rose towards $105 a barrel on Wednesday, bouncing off a nine-month low hit in the previous session after industry data showed a large drop in U.S. crude stocks last week.

Back home, the yield on soon to be benchmark 8.40%- 2024 bond were trading 2 basis points higher at 8.63% from its previous close of 8.61% on Tuesday.

The yields on existing benchmark 2023, 10-year Government Stock were trading 2 basis points higher at 8.85% from its previous close of 8.83% on Tuesday.

The benchmark five-year interest rate swaps were trading 8 basis points higher at 8.10% from its previous close of 8.02% on Tuesday.

The Reserve Bank of India has announced the auction of 364 and 91-days Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 9000 crore respectively. The auction will be conducted on August 06, 2014 using 'Multiple Price Auction' method.

The Governments of India have announced the sale (re-issue) of four dated securities for Rs 14,000 crore on August 8, 2014, including (i) 8.35% Government Stock 2022 for a notified amount of Rs 2000 crore , (ii) 8.60% Government Stock 2028 for a notified amount of Rs 7000 crore, (iii) 9.20% Government Stock 2030 for a notified amount of Rs 2000 crore and (iv) 8.30% Government Stock 2042 for a notified amount of Rs 3000 crore

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.