ETMarkets Investors’ Guide: Why do US bond yields give D-Street a headache? | The Economic Times Markets Podcast

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ETMarkets Investors' Guide: Why do US bond yields give D-Street a headache? | The Economic Times Markets Podcast


Hello, you have tuned into ETMarkets Investors’ Guide, a show about asset classes, investment ideas and market trends. I am Nikhil Agarwal.

As seen in the last few weeks, yields on 10-year US bonds have become one of the most important metrics for Dalal Street investors to track. A sharp spike in yields left Sensex tumbling and any cooling off eases the pressure off the bulls. After reaching a one-year high of 1.754 per cent on March 18, the benchmark 10-year note yields in US are now yielding 1.674 per cent.

In today’s special podcast with independent market expert Rajiv Nagpal, we try and understand the negative co-relation between bond yields and stocks.

Welcome to the show Mr Nagpal.

1) Why have US bond yields shot up in the last few weeks?

2) Can you explain why US bond yields have become such an important metric for Dalal Street investors to track? Should we be really scared about rising yields?

3) Does the negative correlation between bond yields and stocks always work?

4) Which stocks do you think are the most vulnerable to a sharper rise in yields?

Thank you Mr Nagpal. That’s all in today’s special podcast but keep checking this space for more such interesting content. Good bye!



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