If the spike in crude oil prices was not enough, another headwind has now cropped up for domestic stocks and bonds in the form of rising US treasury yields which have hit nearly 16-year highs following hawkish comments by Fed chair Jerome Powell. Yields on the benchmark 10-year US treasury on Friday briefly crossed the 5 per cent mark with reports saying that it touched 5.001 per cent. It, however, retreated from these levels and was trading at 4.94 per cent at the time of writing this report. However, domestic bond yields were largely steady with yields on the benchmark 10-year security trading at around 7.37 per cent. We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters.

Source: The Telegraph October 21, 2023 06:15 UTC