By Admin 
Global economy: There is upheaval in the world’s bond market. According to the Reuters report, the yield reached the new record on 40 -year -old Japanese government bond on Wednesday. Whereas in America, Yield 5 on a 30 -year Treasury bond crossed 5 percent. Experts are looking at it as a warning for the Western Bond Market. Capitalmind CEO Deepak Shenoy told through a post on X on 20 May that there is something fierce in the debate market worldwide (although the situation in India is fine) and yields are increasing. The reason for this problem will be Japan.
Growing bond yield impact on American bonds in Japan
Vishal Goenka, co-founder of IndiaBonds.com, estimates that the growing bond yield in Japan may also have a profound impact on American bonds. Since Japan is one of the largest buyers of US bonds of $ 1.13 trillion, the impact of Japanese yield will also be felt in the American Treasury Market.
According to The Mint’s report, he said, “Fear is that Japanese investors can now buy JGB by selling UST.” This has not been seen since the year 2000.
India’s position is strong
During this time the situation of India remains fine. Inflation is under control. The foreign exchange reserves are $ 691 billion. In such a situation, India can fight better than other emerging markets in the global economy. However, Goenka warned that India is unlikely to remain untouched by the increasing impact of the boom in government bonds.
What is the reason for the rising bond yield?
The impact of increasing American bond yield was seen on Tuesday itself. During this time there was heavy selling of foreign investors. This led to an outflow of Rs 10,000 crore from the Indian stock market. The Chief Investment Strategist of the Geojit Investment warned that if this continues, it is likely to affect the market. He also explained several reasons responsible for this- the decline in the credit rating of American Sovereign Dabt, resulting in a surge in the US bond yield, jump in Japanese government bond yields, rising covid cases in parts of India and the possibility of Israeli attack on Iran.
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