Indian equity benchmarks born by quite 1 Chronicles for the second straight session on Thursday on concern that rising U.S. bond yields within the wake of the Federal Reserve’s peaceful policy stance might herald foreign fund outflows.
· Bond yield is that the come back associate degree capitalist gets thereon bond or a selected G-sec.
· Factors poignant the yield: financial policy of the run (interest Rates), commercial enterprise position of the govt and its borrowing programme, international markets, economy, and inflation.
· A fall in interest rates makes bond costs rise, and bond yields fall.
· Rising interest rates cause bond costs to fall, and bond yields to rise.
· So, an increase in bond yields suggests that interest rates within the medium of exchange have fallen, and therefore the returns for investors have declined.