SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Bond yields spiral up ahead of RBI’s monetary policy review

23 Jan 2012 Evaluate

Bond yields spiraled up on Monday as traders pruned their positions a day prior to the Reserve Bank of India's policy review. Some traders anticipate RBI to cut CRR, the proportion of deposits that must be held with the RBI, by 25 or 50 basis points from its current 6 percent on Tuesday. However, top officials of the RBI have downplayed a cash reserve ratio cut, saying it would be contrary to its anti-inflationary stance. The central bank's macroeconomic and monetary development report due later in the day could also offer some clues on what to expect from the Tuesday's policy review.

On the global front, US Treasuries debt prices fell on Friday as   investors took a more optimistic tone on Greece's debt   restructuring talks, reducing the demand for safe-haven bonds,   ahead of $99 billion in new supply planned for next week. Meanwhile, Brent crude futures held steady around $110 on Monday as concerns about European demand countered worries about supply disruptions from the Middle East due to simmering tensions between the West and Iran.

The yields on 10-year benchmark 8.79% - 2021 bonds were at 8.19%, up from Friday's close of 8.18%.

The benchmark five-year interest rate swaps were trading at 7.25% from its previous close of 7.26% on Friday.

The Reserve Bank of India has announced the auction of 91-day and 364-day Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 4000 crore respectively. The auction will be conducted on January 25, 2012 using 'Multiple Price Auction' method.

Also, twelve state governments would announce auction of State Development Loans 2022 for  Rs 10,961.000 crore on January 24, 2012.

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

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

MoneyWorks4Me ensures this through: