US 10-year yield at 24-year high rattles Nifty, rupee and bond markets. Why is India hit hard?
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- ✓The US 10-year Treasury yield climbed to its highest level since early 2002 on Thursday, rattling global markets.
- ✓In India, the Sensex fell more than 1,000 points as investors worried about foreign outflows.
- ✓The rupee also weakened to 95.98 per dollar, as rising US rates made emerging market assets less attractive.
Story at a Glance
- Category
- BUSINESS
- Reported By
- The Economic Times
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
The US 10-year Treasury yield climbed to its highest level since early 2002 on Thursday, deepening a global bond sell-off and putting fresh pressure on emerging markets, including India. The yield rose as high as 5.34%, crossing its 2007 peak, as investors sold government bonds on concerns over inflation, higher crude prices and the possibility that US interest rates may stay elevated for longer.
The 10-year Treasury, seen as the global benchmark for borrowing costs, also posted its biggest quarterly rise of this century in the third quarter, according to Reuters.
The sharp rise in US yields hit equity sentiment across risk assets. In India, the Sensex fell more than 1,000 points on Thursday, and the Nifty slipped below key levels as investors worried that higher US rates would keep foreign institutional investors away from emerging markets. Investor wealth worth nearly Rs 10 lakh crore was wiped out as the sell-off spread across sectors.
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The Economic Times
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