A bond-market selloff of a scale not seen in decades is creating a fresh headache for Indian investors. Yields across major economies have climbed to multi-year highs as traders grapple with three increasingly uncomfortable forces: oil-driven inflation, tighter monetary policy and deteriorating fiscal conditions.
That matters far beyond the bond market. Bond yields influence borrowing costs across economies, from government debt and mortgages to student and car loans. As yields rise, the cost of borrowing goes up, making spending and investment less attractive and potentially weighing on economic growth.
