Bonds yields come off lows post better than expected January IIP data

12 Mar 2012 Evaluate

Pre IIP Data:

Bond yields edged lower on concerns that the central bank may not buy debt from open market counterbalanced the positive impact of Friday's surprise CRR cut. India has increased its borrowing plan twice this year as its fiscal position has been deteriorating, hurt by a slowdown of economic growth. Meanwhile, traders were awaiting the release of January months’ IIP data for further cues. The street expects that India's industrial production (IIP) is likely to have grown a median 2.1% in January from a year earlier, compared with 1.8% in the previous month.

On the global front, US government debt prices fell on Friday as news of steady job growth in February reinforced the notion the US economy is gaining traction, spurring investors to trim their low-yielding debt holdings and buy stocks and other growth-oriented assets. In mid-afternoon trading, benchmark 10-year Treasury notes were down 6/32 in price with a yield of 2.04 percent, up 3 basis points on the day and up nearly 6 basis points on the week.

Meanwhile, Oil fell on Monday for the first time in four sessions, with Brent slipping towards $125 as global demand concerns took center stage following weak Chinese exports, countering support from supply disruption worries in the Middle East and Africa and a brightening US economic outlook.

The yields on 10-year benchmark 8.79% - 2021 bonds were at 8.26% from its previous close of 8.28% on Friday.

The benchmark five-year interest rate swaps fell to 7.43% from its previous close of 7.48% on Friday.

Post IIP data:

India's annual industrial output growth measured by index of industrial production (IIP) with an updated base of 2004-05, has surpassed all estimates to stage a sharp rebound to 6.8% pace in January 2012 to 187.9, as compared to 175.9 in the January, 2011. The cumulative growth for the period April-January 2011-12 stands at 4% over 8.3% in the corresponding period of the previous year.

The yields on 10-year benchmark 8.79% - 2021 bonds were trading unchanged from its previous close of 8.28% as surprisingly strong January factory output data reinforced views RBI will cut interest rates only in April.

The benchmark five-year interest rate swaps were at 7.45% from its previous close of 7.48% on Friday.

The Reserve Bank of India has announced the auction of 182-day and 91-day Government of India Treasury Bills for notified amount of Rs 4,000 crore and Rs 8000 crore respectively. The auction will be conducted on March 14, 2012 using 'Multiple Price Auction' method. Five State Governments have announced the Auction of State Development Loans 2022 for Rs 2,610.00 crore on March 13, 2012.

Create stable, long-term investment portfolio with strong, consistent stocks.

Start Research-backed Investing ...Now. Subscribe to Sapphire

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.