Global bonds sell off as yields climb, rivalling equities

Global bond markets are facing a deepening sell-off, with yields rising across major economies and corporate borrowing costs climbing, The Hindu BusinessLine’s morning report said on Monday. Higher US Treasury yields are increasingly making bonds a potential alternative to equities for investors, the report noted. The sell-off comes as markets weigh persistent inflation risks and the path of central bank policy. In India, the focus is on the Reserve Bank of India’s monetary policy committee meeting, which runs from October 5 to 7. Analysts are watching whether rates will be adjusted as the festive demand season builds. The report also flagged that despite India’s long bull market, fixed deposits have outperformed major indices over the past three years, with about four in ten stocks losing money in the period. For investors, the bond market’s revival as a competitor to equities marks a regime change that many may be missing, the report said.
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