20/08/2026
RISE IN US BOND YIELDS
When US bond yield rises, money from emerging markets like India flow to US as investing in Indian markets becomes riskier. So domestic stock market falls as FIIs sell. Also dollar strengthens thus weakening Indian rupee. This increases bill for importers like crude oil thus increasing inflation pressures.
This is positive for exporters like those in pharma, automobile and other sectors as they earn more rupees.