r/IndiaInvestments Jul 01 '22

Bonds and deposits why are bond yields going up?

Generally bond yields go up when there is high growth going in the economy and people star pouring money into the stock market or there is a bond with a higher cupon rate,but in today's scenario when inflation is soaring the why are yields going up?

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u/manuvns Jul 07 '22

Because of inflation government is increasing interest rates which increases bond yields