Rise of Indian Government Bond Yield

A bond is a debt investment. Corporates or governments issue bonds directly to investors, instead of obtaining loans from a bank.

A rise in bond yields means interest rates in the monetary system have fallen. In other words, the returns for investors (those who invested in bonds and government securities) have declined.

Rise of Government Bond Yield (Causes)

  • The monetary policy of the RBI, especially the course of interest rates
  • The fiscal position of the government
  • Government’s borrowing programme
  • Global markets, economy, and inflation
  • Rise in Fiscal deficit
  • A fall in interest rates makes bond prices rise and bond yields fall and vice versa.

Relation ....

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