Bigger market crash ahead? Analysts weigh how Sensex, Nifty may react if US 10-year bond yield touches 5%
Financial analysts are debating the potential impact of rising US 10-year Treasury yields on the Indian stock market. With yields approaching 5%, experts warn that this could trigger a significant correction in global equity markets.
Why it matters
Rising bond yields influence global capital flows and investor sentiment, directly impacting the valuation of emerging market equities like the Sensex and Nifty.
Global bond yields are soaring to multi-year highs, but analysts remain divided on whether the Sensex and Nifty could face a sharp crash if the benchmark 10-year US Treasury yield crosses 5%, a level that now appears within reach.The 10-year US Treasury yield rose to a near three-year high of 4.81%, as a global bond selloff intensified. The Middle East conflict has pushed energy prices higher, stoking inflation concerns and fears over ballooning government debt. Japan’s 10-year yield also surged above 3%, its highest in 30 years, while Australia’s climbed to 5.198%, a more than 15-year high. Bond yields move inversely to bond prices.Indian 10-year bond yields also joined the rally, briefly topping 7% for the first time in three months on Wednesday as a deepening global debt selloff and a fresh spike in oil prices rattled investors.
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