SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Bond yields edge lower on year-end buying

31 Dec 2013 Evaluate

Bond yields edged lower on the last trading session of the year 2013 as investors found current valuations attractive to invest ahead of year-end and also with the quarter end. Further, drop in oil prices aided the sentiments for bonds.

However, bond prices could come under pressure in the near future as the government may be forced to borrow more over the next two years in the face of higher redemptions, the Reserve Bank noted in its 'Financial Stability Report’. These views assume significance amid the government's efforts to rein in fiscal deficit.

On the global front, benchmark U.S. Treasury debt yields slipped but held near two-year highs on Monday as year-end buying boosted prices, though volumes were light on account of the New Year's Day holiday. Meanwhile, brent futures held above $111 a barrel on Tuesday on worries about a prolonged outage from OPEC member Libya, positioning the benchmark to end 2013 virtually unchanged.

Back home, the yields on new 10 year Government Stock 2023 were trading 3 basis points lower at 8.83% from its previous close of 8.86% on Monday.

The benchmark five-year interest rate swaps were trading 2 basis points lower at 8.42% from its previous close of 8.44% on Monday.

The Government of India have announced the sale (re-issue) of '1.44% Inflation Indexed Government Stock-2023' for a notified amount of Rs 500 crore through price based auction. The auction will be conducted using uniform price method. The auction will be conducted by the Reserve Bank of India, Fort, Mumbai on December 31, 2013 (Tuesday).

Ten State Governments have offered to sell 10 year securities by way of auction for an aggregate amount of Rs 8,030.58 crore on December 31, 2013.

The Government of India have announced the sale (re-issue) of four dated securities for Rs 15,000 crore, including (i) 8.12% Government Stock 2020 for a notified amount of Rs 4000 crore, (ii) 8.24 % Government Stock 2027 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 2000 crore, on January 03, 2014.

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:

×