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.
