[feb]Effects of rise in bond yields

Question 1

Context?

Answer 1

10 varshachya bonds che returns 5.76% varun 6.20% var gele -> sensex 2300 point ni padala

Question 2

what is bond yield?

Answer 2

ekhadya bond var or government security var investor la milnara return mhnje bond yield

Question 3

why do bond yields rise?

Answer 3

1. Monetary policy of RBI
2. Interest rates,fiscal position of government & it’s borrowing programme,global markets,economy ,inflation
3. Banket paise thevale tar milnara interest rate kami jhala tar bond chya price vadhtat & bond yield kami hote & vice versa

Question 4

co-relation of rise in yield & stock markets?

Answer 4

Bond yield inversely proportional to equity returns(i.e.shares) -> Bond yield vadhto teha loka shares ka vikat ghetil

Question 5

How will borrowing programme of government & economy will be impacted by rise in bond yield?

Answer 5

• Jar bonds madhun jaast paise milat astanna pan RBI la lokankadun paise have astil tar RBI la pan jaast yield offer karavi lagel
• mhanun Government jevha borrow karel paise tevha tya borrowing chi cost vadhel
• Government borrowing chi ji cost aste ti benchmark mhanun vaparali jaati corporates or individual mansala loan detanna -> so tyanchya loan chi pan kimmat vadhel

Question 6

Co-relation of high bond yields & Foreign portfolio investments(FPI)?

Answer 6

• Jevha USA madhlya bond chi yield/returns vadhtat tevha bhartatun FPI tithe jate
• So jar dusrya deshatil bond yield vadhli tar tyacha bhartat yenarya FPI var negative parinam hoil

Question 7

is yield rising worldwide?

Answer 7

Yes,it’s a global phenomenon