Bond yields once again edge higher on Thursday

22 Aug 2013 Evaluate

Bond yields edged higher after the Federal Reserve minutes hinted that the bank may be on course to begin tapering stimulus next month. Bond yield that had fallen to 8.42% on Wednesday from a high of 9.24% a day before in response to the central bank's efforts to reduce the pressure on the money supply in the system, seemed inching up again.

The Reserve Bank will conduct open market purchase operations (OMOs) of long dated Government of India Securities of Rs 8,000 crore on August 23, 2013, and thereafter calibrate them both in terms of quantum and frequency, as may be warranted by the evolving market conditions. The hardening of long term yields has resulted in banks incurring large mark-to-market (MTM) losses in their investment portfolio. On the currency front, Indian rupee plunged to a record low of 65.25 after breaching the previous record of 64.54 as the currency continues to bear the brunt of the large current account deficit.

On the global front, US 10-year Treasury yield set a fresh two-year high on Thursday after minutes of the Federal Reserve's meeting in July suggested that the U.S. central bank was still on track to taper its asset-buying programme as early as next month. Meanwhile, brent crude held above $109 a barrel on Thursday as upbeat data from China kindled hopes for better demand from the world's second largest oil consumer, but signs that OPEC producer Libya may resume exports dragged on prices.

Back home, the yields on 10-year 7.16% - 2023 bonds were trading 10 basis points higher at 8.51% from its previous close of 8.41% on Wednesday.

The benchmark five-year interest rate swaps were trading 17 basis points higher at 8.71% from its previous close of 8.54% on Wednesday.

The Reserve Bank of India has announced the auction of 364-days and 91-days Government of India Treasury Bills for notified amount of Rs 5,000 crore and Rs 7000 crore respectively. The auction will be conducted on August 21, 2013 using 'Multiple Price Auction' method.

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.