The positive news from inclusion in the JP Morgan Bond Index and stable demand from PSBs and Mutual funds is said to have arrested its increase, , us fed, bond yields, Indian bond yields, US Bond Yields, reserve bank of india
Indian equity markets sank in sloppy action last week with persistent selling by overseas investors, triggered by a spike in US bond yields and a rising US dollar index
In general, emerging market equities are seen as more vulnerable to higher interest rates. So, foreign investors may seek refuge in relatively safer assets such as the US dollar.
“More people are selling these bonds than buying them. So we could get trapped into a credit spiral and any kind of unforeseen event, a bankruptcy or a blow up in a hedge fund will turn everybody very cautious and people will run for exits and the crowded exit will lead to a lot of pain.”